Forex Technical Update

Previous: EUR/USD At Resistance with Overbought Conditions (8/24)

EUR/USD 4H Chart 8/24/2012 7:00AM EDT

"EUR/USD

The EUR/USD has been bullish throughout this week, but looks like it will be held under 1.26 to close as a Friday sell-off is developing. We noted in yesterday's (8/23) EUR/USD update that the market should be focused higher, toward 1.26 until Friday at which point a more significant correction is likely as EUR/USD bulls retreat from a bit of exhaustion to end the week. If so, we see a market that is still tentative in its bullish intent.

For today, the 1.2487 pivot is the first key level. A break below that opens up 1.2440. It will probably be hard to push lower than the support pivot near 1.2440 during this Friday US session. The EUR/USD is still in its month-long bullish mode until a sell-off pushes price below a pivot near1.2380, as well as the rising trendline going back to July 24.

There is an intra-session pivot at 1.2553 as seen in the 1H chart. If the US session pushes EUR/USD back above that instead of falling below the1.25 handle, the pair is likely going to turn the focus back toward 1.26 instead of a Friday sell-off.

EUR/USD 1H Chart 8/24/2012 7:15AM EDT

"EUR/USD

Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.

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