EUR/USD Trading in a Pennant

0
43
EUR/USD Trading in a Pennant

Last week, as EUR/USD approached 1.13, we noted that we should look for resistance. Indeed, traders faded the EUR/USD before it could claim 1.13. Let’s follow up with this subsequent bearish attempt.

https://

The 1H chart shows the market falling persistently this week, as price fell below the 100- and 50-hour simple moving averages, which shows some loss of the prevailing bullish bias. The 1H RSI fell to 30 which shows initiation of bearish momentum in this time-frame. However ,with price still above the 200-hour SMA, there is still some slight bullish bias.

Now, if price can hold above 1.10, this current bearish attempt would still look like a bearish correction. Now, if price breaks above 1.1175, it would look like a break above the pennant and the 100-, and 50-hour SMA. This would be a bullish continuation signal, especially if the RSI pushes above 60. Just to be safe, make sure it can clear 1.12, or else there could still be a potential head and shoulders pattern.

Previous Post by Author: AUD/NZD Remains Bullish Ahead of the RBA Statement

SHARE
Previous articleLitecoin Breaks Channel Support, Hinting Further Lows
Next articleTraders Brush off the RBA Rate Cut; Aussie Strengthens
Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.