(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.)
6/23/2010 – EUR/USD – Price action on EUR/USD, a daily chart of which is shown, continues to display some cautious bearishness as of Wednesday (6/23/2010) morning after breaking down below the uptrend support line that represents the bullish correction of the last two weeks. In the event of further bearishness off this breakdown, price could soon start making new long-term lows below the 4-year low of 1.1875 hit in early June. Currently, a key downside level to watch resides in the 1.2150 price region, a recent prior support/resistance level. In the event of a breakdown below this level, the 1.2000 region should be a clear downside target, with the noted 1.1875 long-term low serving as a further downside support target. Only on a breakdown below 1.1875 would a continuation of the strong current downtrend be confirmed.
James Chen, CMT
Chief Technical Strategist
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