Forex Technical Update

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EUR/USD 8/17/2011 1H chart
1.45 Resistance:
- The market is near 1.45 at the beginning of today's US session.
- Strength continues after a throwback was supported near 1.4350.
- It is breaking above yesterday's high, and reaching to 1.45.
- The RSI remained above 40, and shows maintenance of the bullish momentum. With a push back above 70, it is confirming the bullish continuation in the short-term.
- PPI data is the only US-related event risk. After a -0.4% reading in June, a 0.0% flat reading to 0.2% is the forecast for July. The headline reading came out 0.2%. The core PPI number was 0.4%in July, after a 0.3% reading in June, and a 0.2% forecast.
- The 1.45 level is acting as resistance. A break above this level opens up the bullish pivots at 1.4555, 1.4695, 14940.
- The current correction decline should find support above 1.44-1.4420.
EUR/USD 8/17/2011 Daily chart

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Fan Yang CMT
Chief Technical Strategist