Chart of the Day

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(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; uptrend line in green; 50-period simple moving average in light blue.)

7/17/2008 – EUR/GBP – Price action on the EUR/GBP daily chart, as shown, has reached a critical support juncture. This support is significant, and is represented on the chart by the green uptrend line. As of this writing, price has stalled around this level. Therefore, any true breakdown of this line could represent a significant potential breakout trading opportunity. Oscillators are showing that this pair is not yet oversold, so a breakdown could carry additional downside momentum. In the event of a breakdown, further support to the downside resides first in the 1.7850 region. A bounce at the current uptrend support line, on the other hand, would target the next major resistance in the 0.8020-0.8030 region.

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Published On Thu, Jul 17 2008, 14:40 GMT

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