EUR/USD is finding some resistance at 1.2926 during the 1/19 US trading session. Looking at the 1H chart we see that the pair has been in a rising channel, trading at the resistance.  

EUR/USD

EUR/USD

EUR/USD is finding some resistance at 1.2926 during the 1/19 US trading session. Looking at the 1H chart we see that the pair has been in a rising channel, trading at the resistance. The RSI has been in an extended bearish divergence, which means persistent bullish momentum, although it may not be accelerating. If there is a hold of 1.2925 and a corrective decline follows, the 1.28-1.2810 (38.2% retracement) may provide support. It is also the rising channel support and previous resistance pivot.

Looking at the daily chart, we find that the EUR/USD are also testing a declining channel resistance. A break above 1.2950 would be a break above this channel. An extension of the corrective rally can be seen toward a resistance pivot at1.3080, then the next pivot at 1.3230 (also 38.2% retracement). Further confirmation of the reversal, with the market staying above 1.30 for example suggests 1.3423(50% retracement), up to 1.3618 (61.8% retracement). At this point, we should be testing a larger declining channel resistance.

EUR/USD

Fan Yang CMT is the Chief Technical Strategist of IBTRADE and FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources. 

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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. IBTRADE and 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.