Forex Technical Update June 22, 2010 EUR/USD: Bearish Outlook Confirming
- 1H and 4H: Following up with the latest EUR/USD post. The topping action yesterday has now developed into a reversal. The support at 1.2350 was broken, and the topping action was complete.
- The strength of the bearish attempt is now being tested with some support. The market is testing the 1H 200 period moving average, which is the 4H 50 period moving average.
- More importantly, the 4H RSI is testing 40, a break below suggests the momentum has turned.
- The 1.2240 level is 38.2% retracement, and the previous low on June 17.
- The 1H chart is providing confirmation simply by showing lower highs and lows.
- The 1.2150 area is a strong support. The next is 1.1880. These are applicable short-term targets for the current bearish attempt.
Fan Yang Currency Analyst Commodity Trading Advisor
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