Forex Technical Update

Previous: EUR/USD Clearing 1.30 and now 1.31; Eyes on 1.3270 (9/14)

EUR/USD 1H Chart 9/17/2012 9:45AM EDT

"EUR/USD

The EUR/USD consolidated after finding a high on Friday at 1.3170. Since then the pair has been in a couple of very minor down swings to 1.3085. This very brief consolidation period was broken at the start of the 9/17 US trading session. Note the RSI held above a recently common low of 50, and is pushing back above 60, a sign of very persistent bullish momentum even in the near-term. Price action is testing Friday's high.

A break above 1.3170 continues the focus on the 1.3270 pivot, and declining trendline from the 2011 high of 1.4940.

Consolidation scenario: IF the market however is able to throwback under an intra-session pivot at 1.3120, then there is likely more consolidation ahead. In fact the market could be setting up a brief double top in this consolidation scenario, where the focus will be back to the 1.30 handle, especially if the 1H RSI falls below 40.

EUR/USD 15-min Chart 9/17/2012 9:50AM EDT

"EUR/USD

Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.

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