The EUR/USD started the week with heavy price action that cracked 1.30, but did not break below the 1.2970 support pivot. It rallied up to 1.3170 before falling back to 1.3054. The 1H chart shows a downward channel developing. As we enter the 4/19 Asian session, the market is consolidation just under the projected channel resistance.
During the 4/18 Asian session, the market was in a congestion and eventually fell lower. What will the 4/19 Asian session do?
If there is a break above a near-term consolidation high at 1.3135, we open up a scenario to rally toward the previous session high at 1.3170, with an aggressive push targeting 1.32 in the 4/19 European session.
If the market instead falls below the near-term consolidation low at the 1.31 handle, we open up the 1.3055 4/18 session low, with an aggressive push opening up this week's low near the 1.30 handle.
Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist of FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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