Forex Technical Update
The EUR/USD did indeed push for another upswing in the 3/21 Asian session, but failed to reach 1.33, tagging 1.3280 before stalling in the European session. As we enter the 3/21 US trading session, we have developed a bearish divergence with the RSI (in the 1H chart), and a double top has been formed with a break below 1.3250.
Looking at the 1H chart, we see that so far the market has been making higher highs and higher lows, and this double top suggests only a short-term corrective decline for now. A breakout projection using the width of the pattern in the direction of the breakout points toward 1.3210. Note also a bearish divergence in the 4H chart.
However, only a break below 1.3175 and a push of the 1H RSI below 40 should usher in a true topping outlook to be followed by a bearish one if it slides below 1.3140 area (below the 200H SMA, and rising trendline). At this point, the market could be looking to retest the 1.2970-1.30 support zone.
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Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist of FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.