FOREX Trading: EUR/USD Dip Encounters Support at 13070

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Afternoon Technicals (all charts)

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FOREX Trading and Technical Analysis Observations

The EURUSD bullish break in early December remains valid as long as price is above 12875. Although price failed to reach the trendline that extends off of the 2012 lows, a flat interpretation of price pattern from the December high is valid. An RSI reversal signal is evident on the daily as well (RSI above 40 but lower than where RSI was at the previous pivot). With this in mind, I bought the dip into 13070. Monday’s low is critical to the near term bullish case and estimated resistance (if the EURUSD does indeed advance) is former support at 13158.

Keep an eye on the EURAUD, which rebounded sharply from trendline support and the 61.8% retracement of the most recent bull leg yesterday.

EURUSD - Daily

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FOREX_Trading_EURUSD_Dip_Encounters_Support_at_13070_body_eurusd.png, FOREX Trading: EUR/USD Dip Encounters Support at 13070

Prepared by Jamie Saettele, CMT

EURAUD –Daily

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FOREX_Trading_EURUSD_Dip_Encounters_Support_at_13070_body_euraud.png, FOREX Trading: EUR/USD Dip Encounters Support at 13070

Prepared by Jamie Saettele, CMT

--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com

To contact Jamie e-mail jsaettele@dailyfx.com. Follow me on Twitter for real time updates @JamieSaettele

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Jamie is the author of Sentiment in the Forex Market.

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