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Posted by Fan Yang

I am a Chartered Market Technician, but my first encounter with the markets started back in the internet bubble when I thought I was picking great stocks because of great fundamental analysis. While fundamental analysis is an essential part of assessing the market, even the most professional research could be irrelevant without proper experience in the markets. When the bubble burst, I realized that the market is always changing so we must always keep up, but the changes are also anchored to the past so we must understand its history as well.

EUR/USD – Strong Relief Rally ahead of ECB, Where’s Resistance?

by Fan Yang on September 4, 2013

in Forex

Forex Technical Updates

EUR/USD 4H chart 9/4/2013 11:50AM ET


(click to enlarge)

Pullback: The EUR/USD is rising sharply during the 9/4 session, up from the 1.3137 support pivot above 1.32. You can see this rally resolving some bullish divergences in the 4H chart. It is probably squaring up ahead of the ECB meeting on Thursday. But before then, there are a couple of resistance factors just ahead.

1) Price might find resistance below the 1.3254 pivot.
2) Consider resistance if the RSI is around 60 and the stochastic is around 80.

If resistance does push EUR/USD back, it might still be in consolidation ahead of the ECB event risk, so the bearish outlook should be temporarily limited to the 1.3150 area.

A push back above 1.3295 would be needed to neutralize the the bearish outlook.

Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.

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 analysis.

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