EUR/USD 1H Chart 9/24/2012 9:45AM EDT
Bearish Breakout: The 1H EUR/USD chart shows a market that is breaking lower after a corrective rally during the 9/21 session. If the EUR/USD can hold below the 1.2973 pivot, the market is likely still in bearish correction. A rally above 1.30 can return the focus to the upside. Remember that the EUR/USD was just bullish a couple of weeks ago going back to late July. Where can we expect some support against the current bearish correction?
The current 1.29 handle is showing some demand for EUR/USD, but the focus still appears to be bearish in the near-term. There is a minor pivot at 1.2875, but I think the more important support will be down in the 1.2815-1.2820 area.
In the daily chart, you see this as a previous pivot as well as a rising trendline that was broken as resistance as the EUR/USD accelerated early September. Also, the 200-day SMA is at about 1.2820. The 200 day SMA is not a support factor per se, but is a moving average highly monitored in the daily and weekly charts. Also, if the market bounces off the 200-day SMA, giving some elbow space, there would be a bullish “slingshot” signal.
EUR/USD day Chart 9/24/2012 9:50AM 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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