Forex Technical Update

Previous: EUR/USD – Will 1.30 Hold as Support (9/19)

EUR/USD 1H Chart 9/20/2012 12:55PM EDT

EUR/USD 9/20/2012 1H chart

EUR/USD bears achieved some technical goals during the 9/20 trading session:

- The market maintained bearish momentum in the 1H time-frame. The 1H RSI held under 60 again and dipped below 30, even lower that last time, showing persistent bearish momentum in the near, short-term.
- Breaking below a rising trendlinethat represents the rally in September.
- The 4H RSI also breaking below 40 for the first time since the rally took off in late July. This is a sign that the bullish momentum in the mentioned rally is lost.

In the near-term, there could be a pullback as the 1H chart shows the market coming off oversold conditions. But the question now is whether the pullback will break above 1.30. Around 1.30, there is also a declining trendline. Holding under 1.30, and the declining trendline with the 1H RSI holding under 60 would all be signs that bears are still in charge after a pullback. In the bearish scenario, the next support pivots to look out for in the short-term are 1.2875, and 1.2815.

A return above 1.30 and above the declining trendline would refocus the market to the upside even if we are in a medium term consolidation.

EUR/USD 4H Chart 9/20/2012 12:58PM EDT

EUR/USD 9/20/2012 4H chart

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.

Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.

Copyright FX Times All rights reserved.