Forex Technical Update
The EUR/USD continues falling after a 2-day consolidation to start the week. It is now the 78.6% retracement level of 1.3380, reinforced by pivots back late September and early October. Below that we have 1.3145 October low as the next short-term target.
Looking at the daily and weekly chart, we see that we are both trading below the 200SMA, but the RSI in both have not tagged 30, and is still struggling to break below 40. Although the momentum is not there in the daily and weekly chart, it is there in the 4H chart not shown here.
The weekly chart shows lower targets below the 1.3145 low. The 61.8% retracement of the 1.1875 to 1.4939 swing (June2010 - June 2011) is at 1.3045. Below that, we have a swing projection target toward 1.2830, with 1.2874 as the 2011 low.
Fan Yang CMT is the Chief Technical Strategist FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources