EUR/USD in Bullish Breakout from FAlling Wedge; 1.3130 is the Next Resistance Pivot

by Admin

Awards 2013

GBP/USD 1H chart 4/25/2013 8:30AM EDT


Wedge breakout: The EUR/USD has been in a falling wedge since 1.32. However we saw an initial break during the Asian 4/25 session. Then there was a throwback that bounced off a near-term ascending trendline and the previous resistance area, thereby confirming a bottom. in the short-term. As we get into the 4/25 US session, the market is pushing ER/USD above 1.3085 where we saw some previous resistance pivots. The 1H RSI is also tagging  70, showing bullish momentum.

Next resistance pivots: The near-term target/resistance could be the 1.3125-30 area, which contains a previous resistance pivot. We should also monitor 1.31 for any reaction that might bring the market down toward the 200-hour SMA in the context of an intra-session correction. A more aggressive outlook coming out of this bullish breakout is the 1.32 high. A rally above that then opens up further bullish outlook, but let’s not get ahead of ourselves now while observing the 1H chart.