(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.)
3/01/2010 – EUR/USD – Price action on EUR/USD, a daily chart of which is shown, has formed yet another short-term consolidation within the context of a strong bearish trend that has been in place since early December. The current consolidation continues to carry a bearish bias. The bottom of the consolidation resides around the 1.3450 price region, just above key general support in the 1.3400 area. Further bearish price action that breaks down below both the consolidation and this 1.3400 level should confirm a downtrend continuation potentially targeting further key support in the 1.3100 price region. Upside resistance within the context of the strong current downtrend tentatively resides around the 1.3700 price region, just above the top of the current consolidation.
James Chen, CMT
Chief Technical Strategist
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