FXstreet.com

Chart of the Day

4

2

Chart of the Day − EUR/USD

Mon, Dec 1 2008, 19:00 GMT
by James Chen

FX Solutions


EUR/USD Daily Chart

(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; uptrend lines in green; downtrend lines in red; horizontal support/resistance levels in yellow; 50-period simple moving average in light blue.)

12/01/2008 – EUR/USD – Price action on the EUR/USD daily chart, as shown, has retraced almost its entire bullish breakout run of early last week. This may be viewed as simply a continuation of the price consolidation that has prevailed in this pair for the last month or so. Currently, price has approached a strong confluence of support within the context of this consolidation. This confluence of support is imposed by a combination of technical factors. This includes a key prior support/resistance level around the 1.2450 region; a short, but significant, uptrend line supporting the consolidation (the lowest green line); and a dynamic downtrend line (the lowest red line) that originally served as resistance before breakout, and should now serve as strong support going forward. Because of the strength of this support confluence, any break to the downside below support should represent a significant violation that could potentially carry considerable further momentum downward. In the absence of this type of fundamentally-driven breakdown, however, the technical bias is towards a turn back up near support, eventually targeting the 1.3050-1.3100 region once again, the approximate top of the current consolidation.

 * Visit my forex tips and techniques blog here: http://fxpath.fxstreet.com *

IMPORTANT NOTICE: These comments are for information purposes only. The information contained on this document does not constitute a solicitation to buy or sell by FX Solutions, LLC., and/or its affiliates, and is not to be available to individuals in a jurisdiction where such availability would be contrary to local regulation or law. Opinions, market data, and recommendations are subject to change at any time. Forex trading involves substantial risk of loss and is not suitable for all investors.


Archive

FX Solutions, LLC  | Saddle River Executive Centre 1 Route 17 South, Suite 260 Saddle River, New Jersey 07458
http://www.fxsolutions.com | info@fxsol.com

Legal disclaimer and risk disclosure

FX Solutions, L.L.C.® assumes no responsibility for errors, inaccuracies or omissions in these materials. FX Solutions, L.L.C.® does not warrant the accuracy or completeness of the information, text, graphics, links or other items contained within these materials. FX Solutions, L.L.C.® shall not be liable for any special, indirect, incidental, or consequential damages, including without limitation losses, lost revenues, or lost profits that may result from these materials.

Related reports

FX View - Headline unemployment rate creates dollar shocker by Interactive Brokers LLC
Fri, Nov 6 2009, 18:41 GMT

Forex Daily Overview - USD mixed, unemployment rises to 10.2% by Easy Forex
Fri, Nov 6 2009, 18:31 GMT

Forex Daily Analysis - USDJPY is moving towards support level at 89.55 by Investija.com
Fri, Nov 6 2009, 14:35 GMT

Forex Technical Report - U.S. Markets Brace for Jobs Data by ForexHound.com
Fri, Nov 6 2009, 13:29 GMT

Forex Technical Report - Dollar Trading Lower Ahead of U.S. Jobs Data by ForexHound.com
Fri, Nov 6 2009, 13:19 GMT

eurusd

View All

Related content


Interested in forex trading? forex brokerage firms!


FX Solutions LLC
Contact the broker/FDM
Open a demo account
Forex Capital Markets, LLC (FXCM)
Contact the broker/FDM
Open a demo account
MIG INVESTMENTS SA
Contact the broker/FDM
Open a demo account
Capital Market Services, L.L.C.
Contact the broker/FDM
Open a demo account
CitiFX Pro
Contact the broker/FDM
Open a demo account

GET CASH BACK FOR YOUR TRADES!   Learn more about the Pip Rebate Program

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.

Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

©2009 "FXstreet.com. The Forex Market" All Rights Reserved.