EUR-USD held above 1.4250, and is in a Counter-Trend Breakout
The Counter-Trend Breakout is a term used to describe a market that reverses from a Counter Trend or corrective move, and this assumes a trend development.
EUR-USD is in a choppy trend, but there is a short-term one to the Northside as the market carried above the 200-Day SMA in the 1H chart, and is making higher highs and higher lows.
Note: the RSI reading fell to 30, meaning that the Bullish momentum continues to be challenged, but if it rallies back above 60, the Bearish momentum of the last couple of Global sessions is in the scrapbook.
Last week, saw the EUR-USD climb briefly above the resistance at 1.45, and fall back below 1.44.
Thursday's risk was dominant and the EUR-USD continued to fall, but it was noted that the market should stay Bullish above 1.4250.
1. The market found support just above 1.4250, and is now in a Counter Trend Breakout. The breakout is established with a rally above a projected declining trend-line.
2. The next important upside breakout to suggest a Bullish continuation is a break above 1.4420, which acted as support until further risk-off trading.
3. 1.4420 is also just a hair above the 61.8% retracement level, above which there is a higher chance the market is not just in a correction rally.
4. Should the market crack the next highs at 1.4535-1.4555, that should open up 1.4695 and 1.4940 pivots to the Northside. Stay tuned...
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.