Forex Technical Update

Previous: EUR/USD To Consolidate Gains Ahead of ECB Meeting (2/8)





I did not get much of anything new or surprising from Mario Draghi's statement, and the market looks like it didn't neither, at least in the EUR/USD reaction, which failed to define direction. Heading into the press conference, the EUR/USD bounced off a projected rising trendline from a low of 1.3235 to 1.33 in a very sharp manner. During the press conference however, it fell back to test 1.3240, but the trendline provided support again.

The RSI reading in the 15-min chart shows that there is bullish bias as it has tagged 70 and failed to tag 30. A push above 60 would be an initial confirmation of this slightly bullish bias in momentum, and a push above 70 establishes further bullish momentum. Along with price breaking above 1.3311, the EUR/USD should be seen targeting 1.3350 in the near-term (US session), and 1.36-1.3650 in the short to medium term (if confirmations continue to take place going into next week).


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Fan Yang CMT is a forex trader, analyst, educator for IBTrade; and main contributor for FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.