Forex Technical Update
The EUR/USD is held under this week's high at 1.3960. It has respected 1.3850 as support. Over the Wednesday Asian and European sessions, the market made higher lows, while failing to break above the week's high. Looking at the 1H chart, we can see a congestion in price action, reflecting the uncertainty of the market, but also resilience of the euro as the market makes higher lows off of a projected trendline. The RSI reading also never broke below 40 after tagging 70. Price is also trading above the 200SMA.
The upside is to the 1.40 psychological resistance, but also 1.4020 is 61.8% retracement, and 1.4045 is a previous pivot of importance. Above 1.4050, we open up 1.4250, 78.6% retracement and a declining trendline. If the market fails to break to the top, or has a head fake to the upside, a slide first needs to test 1.3850. Below that we can anticipate 1.38 and then 1.37 as important support pivots. 1.3775 may also be important as 61.8% retracement of the rally from 1.3660 to 1.3960.
Fan Yang CMT is the Chief Technical Strategist FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources