(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.)
6/01/2010 – EUR/USD – Price action on EUR/USD, a daily chart of which is shown, has once again descended as of Tuesday morning (6/01/2010) New York session. Today’s drop tentatively broke down below the prior 1.2140 short-term support, establishing yet a new 4-year low for the pair around the 1.2110 price region. This occurs within a continuing strong and steep downtrend. At the current juncture, although technically within a short-term consolidation, price appears to be steadily pushing its way down towards its key 1.2000 support target. Any further subsequent breakdown below 1.2000 within the context of the confirmed downtrend continuation could potentially target further downside in the 1.1800 support price region.
James Chen, CMT
Chief Technical Strategist
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