Forex Technical Update
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 at 1.3080, 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.