Forex Technical Update June 21, 2010 EUR/USD: Stalking Topping Action
- 4H and 1H: The 1.24/1.25 level is a resistance zone as mentioned last week. However, the market may not have finished topping off, and therefore bearish outlooks at the moment may be premature. The 4H RSI shows the bullish momentum unable to show overbought signs. OB signs at this stage may indicate a longer rally in the EUR/USD.
- While there are signs of weak bullish momentum in the 4H chart, the 1H chart shows lack of bearish momentum.
- The RSI has not turned below 40, so bullish momentum is still intact. Also there may be a positive reversal developing, if the market stays above 1.2350.
- I will continue to stalk what may be topping action that is yet to be complete.
Fan Yang Currency Analyst Commodity Trading Advisor
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