Forex Technical Update
The latest in the Eurozone debt crisis saga is a Greek bailout deal reached. The market had a buy the rumor sell the news type of action after initially rallying after the decision, but failing to climb above 1.33 over the 2/21 Aian-European session. The market found support at 1.32 entering the US session, and is climbing back up. The 1H chart shows that the market was still establishing higher lows and highs, and the RSI was held above 40, signs of bullish momentum (especially if RSI can push back above 60). Also the market stayed above the 200 hour simple moving average, also suggesting the market is still bullish.
A re-test of 1.3320 is in sight. Failure to break it keeps a medium term double top scenario alive especially if the market falls below 1.32 again, but a break above suggests continuation of the medium term bullish mode toward the 1.35 and 1.36 handles.
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Fan Yang CMT is a forex trader, analyst, educator for IBTrade; and main contributor for FXTimes - provider of Forex 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.