EUR/USD 1H Chart 9/20/2012 12:55PM EDT
EUR/USD bears achieved some technical goals during the 9/20 trading session:
– The market maintained bearish momentum in the 1H time-frame. The 1H RSI held under 60 again and dipped below 30, even lower that last time, showing persistent bearish momentum in the near, short-term.
– Breaking below a rising trendlinethat represents the rally in September.
– The 4H RSI also breaking below 40 for the first time since the rally took off in late July. This is a sign that the bullish momentum in the mentioned rally is lost.
In the near-term, there could be a pullback as the 1H chart shows the market coming off oversold conditions. But the question now is whether the pullback will break above 1.30. Around 1.30, there is also a declining trendline. Holding under 1.30, and the declining trendline with the 1H RSI holding under 60 would all be signs that bears are still in charge after a pullback. In the bearish scenario, the next support pivots to look out for in the short-term are 1.2875, and 1.2815.
EUR/USD 4H Chart 9/20/2012 12:58PM EDT