Forex Technical Update July 7, 2010 EUR/USD: Price Action Showing Bullish Bias
- 1H: Following up with the last EUR/USD post, and video post. The EUR/USD looked to rally towards 1.2750 for an equality of the previous upswing. This projection would complete an AB=CD pattern and resistance is expected.
- We see in the 1H tie-frame a rally from the left side that came out of Monday's wedge pattern. Tuesday's rally topped at 1.2660, and a decline to 1.2550 (61.8% retracement) followed.
- Now, ahead of the US session, the market is showing a reversal candlestick combination. At least this is an engulfing pattern.
- An up swing from this level, with equality to Tuesday's targets 1.2740, near the 1.2750 projection.
- A break above 1.26 is needed for me to have confidence in this outlook.
Fan Yang Currency Analyst Commodity Trading Advisor
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