(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.)
4/22/2010 – EUR/USD – Substantially bearish price action on EUR/USD, a daily chart of which is shown, has once again descended to re-test the 10-month lows that were hit in late March (1.3266) and double-tested in early April (1.3281). The current re-test of these lows could either become a triple bottom low or turn into a key support breakdown scenario. In the event of the latter case, price will have finally confirmed a downtrend continuation after the substantial bullish correction that occurred within the past couple of weeks. A strong breakdown below the noted double-bottom should target further downside support in the key 1.3100 price region. To the upside, significant resistance resides in the 1.3400 price region within the context of the strong overall downtrend.
James Chen, CMT
Chief Technical Strategist
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