Forex Technical Update
EUR/USD 4H Chart 6:50AM EDT 6/25/2012
The EUR/USD is extending the bearish trend that started last Thursday (6/21). It is now sliding below 1.25 to start this week during the 6/25 Monday session.This is confirming a breakout below June's corrective channel. The 4H chart shows that below the 1.25 handle, the next key level is support pivot around 1.2430. Below that we are looking at the June lows of 1.2285-1.23.
The market is capping the optimism it had the first half of June because it is tentative ahead of the EUR summit. Before the meeting however, the bearish outlook might not be as panicky and straight down but instead develop with choppiness. If so we can probably still see a risk rally or two to be faded toward these support pivots within June's price action.
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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