EUR/USD in Bullish Continuation from Consolidation Breakout

by Admin

Awards 2013

EUR/USD 1H chart 8:11AM EDT 4/16/2013


Consolidation breakout: The EUR/USD has been consolidating since last week, since finding resistance at 1.3137. It was a relatively small consolidation finding support as low as 1.3021, where it held above the 200-hour SMA, reflecting bullish bias. As we get into the 4/16 US session, we are seeing a strong bullish push out of the current consolidation pattern, attempting to break above the 1.3133 high.

Targets: If the market does break above 1.3137 there is a minor support/resistance pivot around 1.3160-1.3165. Also, if there is a throwback, lthe market should stay above 1.3075-1.3080, which is the central pivot of the consolidation zone. A break below would suggest a false breakout.

Then above 1.3165, we have the 50% retracement at 1.3227 and 61.8% retracement at 1.3341, which should probably be the limit to our bullish expectation for now.

EUR/USD Daily chart 8:15AM EDT 4/16/2013