Forex Technical Update
- UDPATE: As I was wrapping up this article, the market is breaking above 1.4450. So, let's anticipate the rally towards the 1.45-1.4517 high and if we can close above that today. Still, be careful of volatile action below 1.4517.
- EUR/USD's recent volatility has been high, but contained within the ranging context. If is watching soup boil through a transparent pressure cooker.
- The lid is at 1.4450 right now, and the fire is under 1.4350. If you were trading this range in the very short-term, you probably got whiplashed.
- Your broker might not let you enter the price you wanted or exit quick enough at the price you wanted. This is common in fast moving markets such as the one we saw this morning.
- Above 1.4450, we still have pivots up to 1.4517 to hold as resistance before we can finally abandon the consolidation range.
- The daily chart shows that the near-term bullish target is 1.4555. Above that pivot, we open up 1.4696 and then 1.4940.
- The downside below 1.4350 is first the 1.43-1.4280 support. We also have 61.8% retracement at 1.4260. So unless you like being whipped, you might want to see if the market can clear below 1.4250 before looking for a slide towards the 1.40-1.41 common lows within a larger consolidation context.
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Fan Yang CMT
Chief Technical Strategist