Forex Technical Update
EUR/USD 4H Chart 8/30/2012 3:30PM EDT
The EUR/USD is following the consolidation scenario so far ahead as world financial leaders get ready for the Jackson Hole Symposium. The 4H chart shows the pair now sitting on top of a projected triangle support. As the 8/30 US session winds down, the market is showing some demand here at this near-term trendline.
In this non-directional scenario, the near-term mode is consolidation. In the 1H chart, we had the RSI reading tag 30, and is now bouncing off this near-term oversold area. However, the upside is limited in such a consolidation mode.
Tomorrow (8/31), Bernanke will make a speech at the Jackson Hole Symposium in Wyoming. His tone on QE will be compared to that of the FOMC meeting minutes which showed more urgent consideration of easing. Maybe then, we can break out of the triangle. Then, if the break can sustain through the 1.24-1.26 range, we have a breakout and likely direction for the next week. Legarde, head of the IMF, will be speaking on Friday as well, but probably after retail trading ends, so the effects will not likely be seen on the charts until the start of next week's trading.
EUR/USD 1H Chart 8/30/2012 3:40PM EDT
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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