Wednesday May 26, 2010 - 21:46:21 GMT
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Fxtimes: Forex Technical Update EUR/USD May Target 1.17
Forex Technical Update
May 26, 2010
EUR/USD May Target 1.17
- Daily: Yesterday, I had to adjust a premature bearish outlook to allow for further correction rally in the EUR/USD. This was in the post â€œAdjusting Outlooks in EUR/USD and USD/CADâ€œ.
- I was allowing for a rally towards 124.40 to look for topping. The market was unable to break above 1.24 and a possible ab=cd decline has developed (see 4H and 1H chart).
- Before stalking this move closer, we see that if the current decline extends, it may go down to 1.17. This is a swing projection suggested by the negative RSI reversal, and channel breakout target.
- 4H and 1H: The 4H chart shows the market is very bearish, but is consolidating. The RSI in this chart is bearish, especially breaking below 40, although this has not been confirmed. At least there is an inability to break above 60 (62), so the bearish bias is appropriate.
- Looking at the 1H time-frame, we see that the 60 level in RSI held as resistance for the first time in this consolidation. The 40 is about to be tested as support.
- One scenario is presented, as the market tested 78.6% retracement. A rally towards 124.40 can still materialize.
- Then, this consolidation may be resolved. A decline from there should be expected to test the 121.50 low, and if this low breaks 117.00 is the next target.
Commodity Trading Advisor
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analyses.
All screenshots are made from VT Trader 2.0 and are of actual market data at the time of the screenshot.
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