Previous: EUR/USD Fails to Maintain Short-term Bullish Momentum; At Trendline (4/23)
The EUR/USD found support at the 1.31 level. There was an initial break of a very short-term trendline, after which the market failed to sustain the break and rallied. The chart above shows an adjusted trendline connecting to low near 1.31. Now in the 4/24 European- US trading session, the market appears to have established another support pivot at 1.3150. With the EUR/USD now pushing toward 1.32, the market is building some bullish bias in the short-term with upside risk toward 1.33, if it can clear the 1.3225 high from the previous week.
Looking at the 4H EUR/USD chart, the market will meet a declining trendline at the 1.33 handle. The market is slightly bullish now, but it is sideways in the medium term, with a bit of bearish bias. So at 1.33, we can anticipate resistance. Extension of the short-term bullish attempt can push through 1.33, and attack the 1.3380 high. If this happens, the bearish bias to the sideways action is gone. A break above 1.3380 brings in a bullish bias within medium term consolidation.
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Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist of FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.