EUR/USD Reverses Sharply Back to Projected Trendline

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EUR/USD 1H Chart 11:45AM EDT 6/11/2012

 The EUR/USD turned back from 1.2665 high established right after the start of the week opened with a risk-on pop, as a reaction to Spain bailout headlines. Through the 6/11 Asian-European and now the US session, the EUR/USD has been falling back, now trading below the 6/8 close.

Now we are at key support factors again. 1.25 is a psychological support. 1.2490 is a pivot level, going back to May 25. There is also the 1H SMA near 1.2470. A projected trendline also reside around price action if it dipped in the US session to 1.2470.

EUR/USD 4H Chart 11:48AM EDT 6/11/2012

Looking at the 4H chart, we see that a break below the 1.2440 and rising trendline opens up a bearish continuation scenario, first with 1.24 pivot then the 1.2285-1.23 level as very short-term targets before the consolidation scenario can be assessed as complete, an the bearish continuation scenario can be established.

Otherwise, we still have upside risk toward 1.2720 and 1.2820 ahead of the Greek re-election, on June 17.

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Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist of FXTimes - provider of rex 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.