James Chen
10-26-2010, 09:43 AM
10/26/2010 – EUR/USD – Price action on EUR/USD (a 4-hour chart of which is shown) as of Tuesday (10/26/2010) has broken down below a rising wedge consolidation pattern. This occurs after price action broke down below a steep parallel uptrend channel in mid-October. Since that channel breakdown, the pair has been unable to rise enough to re-test its 1.4157 long-term high reached approximately two weeks ago. Despite the wedge breakdown, EUR/USD is still technically within the confines of a continuing consolidation. Only on a further breakdown below the last significant low in the 1.3700 price region would a strong bearish stance potentially become evident. In the event of this breakdown, a key further support target to the downside resides in the 1.3400 price region.
James Chen, CMT
Chief Technical Strategist
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; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; chart patterns in white; 50-period simple moving average in light blue.)
James Chen, CMT
Chief Technical Strategist
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; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; chart patterns in white; 50-period simple moving average in light blue.)