Consolidation at Support
Trading Support and Resistance
|5 min EUR/USD Technical Chart Analysis|
The support zone at 1.2825 (analysed in EUR/USD Market Analysis (14.05.12)) which held the market in the yesterday and in the Asian session (got tested) could not hold a second test and got broken recently.
Inverted Head and Shoulder
On the 5 min chart above, we might interpret the price action in the Asian session today as an inverted Head & Shoulder. The neckline got broken and the market went up to 1.2869.
The circled consolidation on the right of the chart took place at the support level created by the green trend line, the inverted H&S neckline, the 61.80 % fib retracement of the recent swing up and the 100 % fib extension from wave A-B moved to point C at about 1.2840. The market consolidated there (typical three swings) and in the following market could not hold support so that price broke down strongly (probably due to news...).
Market currently seems to find some support at the weekly trend line from the June 2010 low and January 2012 low EUR/USD Market Analysis (15.05.12).