Forex Technical Update
The EUR/USD broke above a triangle, but a throwback is invalidating the breakout. In the 12/7 US trading session, it is testing a rising support at the 1.3350 pivot. The initial reaction after the 9:30AM EST stock market open was a bounce. However, if the market is held under the 200 hour simple moving average, the bounce is see only as a pause before an attempt to break lower.
A break below 1.3350 opens up 1.3260 pivot, and then the low near 1.3215. It will be hard to break below this latter low ahead of tomorrow's ECB meeting and Friday's EU summit. As the market anchors out of a triangle seen more clearly in the 4H chart, it is not picking a direction yet, but rather falling into a sideways range, with resistance at 1.3450 and support at 1.3350.
This is a range within a larger range where resistance is at 1.3530 and support is at 1.3215 area. If we bounce up from 1.3350, there is a chance the market will test 1.3450 again, a break above which opens up 1.3530.
Fan Yang CMT is the Chief Technical Strategist FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources