James Chen's Instablog

EUR/USD Bearish Correction of Bullish Correction

Tue, 01 Nov 2011 12:31:34 -0400

EUR/USD (daily chart) as of Tuesday (11/01/2011) has dropped precipitously since the beginning of this trading week from its high last week around key 1.4250 resistance (also the underside of the major uptrend support line extending from the June 2010 low). This dramatic fall broke down below several key levels, including 1.4000 and 1.3830, and occurs after a steep bullish run of over 1100 pips that extended through most of the month of October. For more EUR/USD forex technical analysis, please click here.

James Chen, CTA, CMT
Director of Technical Research and Education
FXDD

EUR/CHF Continues Bearish Downturn Within Long-Term Downtrend

Mon, 31 Oct 2011 12:06:56 -0400

EUR/CHF (daily chart) as of Monday (10/31/2011) has continued its fall towards the significant 1.2000 psychological support level after having turned down two weeks ago from an important long-term downtrend resistance line extending from the December 2009 high and the key 1.2400 price region. For more EUR/CHF forex technical analysis, please click here.

James Chen, CTA, CMT
Director of Technical Research and Education
FXDD

USD/CHF Follows Through on Head-and-Shoulders Pattern Breakdown

Thu, 27 Oct 2011 12:05:26 -0400

USD/CHF (daily chart) as of Thursday (10/27/2011) has extended its fall substantially after breaking the neckline of a well-formed head-and-shoulders reversal pattern. Thursday’s price action saw the pair drop more than 200 pips to hit a 7-week low just below 0.8600, approaching key support in the 0.8550 price region. For more USD/CHF forex technical analysis, please click here.

James Chen, CTA, CMT
Director of Technical Research and Education
FXDD

USD/JPY Hits New All-Time Low Within Bearish Trend Channel

Wed, 26 Oct 2011 12:33:55 -0400

USD/JPY (daily chart) as of Wednesday (10/26/2011) has hit yet a new all-time low below 76.00, reaching down to 75.70 in Wednesday’s trading. This bearish price action conforms to a bearish trend channel that extends back to the early April high around 85.50. The downtrend channel has prompted the pair to drop below successively lower support levels, including the key 80.00 and 78.00 levels. For more USD/JPY forex technical analysis, please click here.

James Chen, CTA, CMT
Director of Technical Research and Education
FXDD

GBP/USD Hits Key 1.6000 Resistance

Mon, 24 Oct 2011 13:40:57 -0400

GBP/USD (daily chart) as of Monday (10/24/2011) has extended its rise up to the key 1.6000 psychological resistance level before backing off slightly. This occurs within the context of a steep bullish correction that began after price hit its 1.5270 low in early October. The current 2+ week bullishness has risen to more than 50% of the precipitous fall from the August 1.6616 high to the noted October 1.5270 low. For more GBP/USD forex technical analysis, please click here.

James Chen, CTA, CMT
Director of Technical Research and Education
FXDD

EUR/CHF Turns Down from Resistance Confluence

Thu, 20 Oct 2011 15:00:09 -0400

EUR/CHF (daily chart) as of Thursday (10/20/2011) has hit and tentatively respected a key resistance confluence that includes both a long-term descending resistance trend line extending back almost two years, and a key support/resistance line at the important 1.2400 level. Therefore, price is currently at a critical juncture. For more EUR/CHF forex technical analysis, please click here.

James Chen, CTA, CMT
Director of Technical Research and Education
FXDD