James Chen
09-08-2008, 09:54 AM
9/08/2008 – EUR/USD – Price action on the EUR/USD daily chart, as shown, has pulled back up to the long-term uptrend support line that it broke on Thursday of last week. After pulling back almost precisely to the line (represented by the lower green line), which should now be serving as resistance (support becomes resistance), price retreated back down as might be expected from a technical perspective. Any further move down on this potential breakdown-pullback-continuation should eventually hit key historical and psychological support around the 1.4000 region. Before that, however, there is some intermediate support around the 1.4125 level. Any correction back up, on the other hand, should continue to consider the abovementioned broken uptrend line as significant resistance.
James Chen
Chief Technical Analyst
FX Solutions
IMPORTANT NOTICE: These comments are for information purposes only. The information contained on this document does not constitute a solicitation to buy or sell by FX Solutions, LLC., and/or its affiliates, and is not to be available to individuals in a jurisdiction where such availability would be contrary to local regulation or law. Opinions, market data, and recommendations are subject to change at any time. Forex trading involves substantial risk of loss and is not suitable for all investors.
(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; uptrend lines in green; horizontal support/resistance lines in yellow; 200-period simple moving average in light blue.)
James Chen
Chief Technical Analyst
FX Solutions
IMPORTANT NOTICE: These comments are for information purposes only. The information contained on this document does not constitute a solicitation to buy or sell by FX Solutions, LLC., and/or its affiliates, and is not to be available to individuals in a jurisdiction where such availability would be contrary to local regulation or law. Opinions, market data, and recommendations are subject to change at any time. Forex trading involves substantial risk of loss and is not suitable for all investors.
(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; uptrend lines in green; horizontal support/resistance lines in yellow; 200-period simple moving average in light blue.)