Forex Technical Update August 18, 2010
EUR/USD Confirming Further Rally
- 4H: The EUR/USD pair is continuing the anticipated correction rally noted in yesterday's EUR/USD technical update, and video update. The market continues to rally from the 1.2750 after a dip in the Asian session. The 1.29 area is still not broken, but the throwback that rested channel resistance as support suggests continuation.
- The rally can be projected from the previous swing, bringing the target to the 1.30 area, just below the 50% fibonacci retracement level.
- This is still considered a correction rally, and not a real reversal since the momentum is still under 60, after breaking below 30.
- Therefore, the near-term projection is 1.30, and if the market tops off, there is a chance for further decline.
- However, the daily offers a different perspective.
Commodity Trading Advisor
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