Forex Technical Update
EUR/USD 1H chart 5/11/2012 10:55AM EDT
The EUR/USD is starting to slow its downward roll. However, after failing to firmly break above 1.2970 to form a triple bottom yesterday, the market dropped down to 1.29, cracking the 1.2908 low from May 9. The 1.29 level continues to hold as support, and the market trades near1.2950 just ahead of the 5/11 US trading session.
The market is starting to establish a range roughly between 1.29 and 1.2975. US PPI data comes out 8:30AM EDT, stock market opens 9:30AM and then the Umich consumer confidence data comes out at 9:55AM. During and after these temporal pivots, let's see if the market can break out of this range.
Immediately outside of the range, 1.30, psychological resistance to 1.3020, previous support pivot can provide an area for a throwback. To the downside there is a pivot zone in the 1.2855-1.2875 area. We can expect some pullback from these levels as well.
Watch out for the market being sensitive to Greek election headlines as it gets near a re-election due to the Samara party's strong stance ie. against the EU-lead austerity.
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.
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