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James Chen
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James Chen, CTA, CMT is Director of Technical Research and Education at FXDD, a global leader in foreign exchange trading. He is also a registered Commodity Trading Advisor and a Chartered Market Technician. He is the author of the books, "Essentials of Foreign Exchange Trading" (John Wiley &... More
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Essentials of Foreign Exchange Trading
  • Chart of the Day - 8/19/2009 – EUR/USD 0 comments
    Aug 19, 2009 10:49 AM

    (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; 50-period simple moving average in light blue.)

    8/19/2009 – EUR/USD – Price action on EUR/USD, a 4-hour chart of which is shown, is currently in consolidation near the bottom of a parallel uptrend channel that has been in place since early June. This parallel uptrend channel exists within the context of a much larger parallel uptrend channel that has been in place almost since the beginning of the year. In the current smaller channel, two dynamic support/resistance areas are of key significance. First, in the event of a substantial breakdown below the bottom of the smaller channel, the immediate further downside support target resides around the bottom of the larger channel. Second, a strong breakout above the bearish counter-trend resistance line within the context of the smaller channel could target further major resistance at or near the top of the smaller channel.

    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.

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