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.
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