Chart of the Day

This report has been deactivated

(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; uptrend lines in green; horizontal support/resistance line in yellow; 200-period simple moving average in light blue.)

8/08/2008 – EUR/USD – On the EUR/USD daily chart, as shown, a massive breakdown of the horizontal trading range that price has been traversing for the past 5 months has finally occurred. This exceptionally strong and swift breakdown of the range’s low at around 1.5280-1.5300 occurred on Thursday night, and has continued with fierce follow-through on Friday morning. Incidentally, coinciding with this breakdown have been equally significant breaks on the other majors. Oscillators like the displayed Stochastics are giving extreme oversold readings, but still pointing down. Strong support immediately to the downside, as of this writing, resides around the 1.4960 level, which is the top of the previous horizontal trading range. Any major rebound of the breakdown should meet a solid resistance barrier at the key 1.5280-1.5300 level that price just broke.

* 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.

Published On Fri, Aug 8 2008, 15:19 GMT

Follow the markets with the author of the Chart of the Day report: James Chen in his blog FX Path.

And watch the ITC's Exclusive Video Interviews with James Chen:

How NFA new regulations could change the Broker industry?

Which are the most useful tools to identify trends?

About this Report

FXDD

http://www.fxdd.com/

support@fxdd.com

More Reports from this Contributor

Archive

Older Posts:

Advertisement

Legal disclaimer and risk disclosure

Trading in the Foreign Exchange market involves a significant and substantial risk of loss and may not be suitable for everyone. You should carefully consider whether trading is suitable for you in light of your age, income, personal circumstances, trading knowledge, and financial resources. Only true discretionary income should be used for trading in the Foreign Exchange market. Any opinion, market analysis or other information of any kind contained in this email is subject to change at any time. Nothing in this email should be construed as a solicitation to trade in the Foreign Exchange market. If you are considering trading in the Foreign Exchange market before you trade make sure you understand how the spot market operates, how FXDD is compensated, understand FXDD's trading policy and rules and be thoroughly familiar with the operation of and the limitations of the platform on which you are going to trade. This message and any files transmitted with it are confidential and intended solely for the use of the individual or entity to whom it is addressed. It may contain sensitive and private proprietary or legally privileged information. No confidentiality or privilege is waived or lost by any mistransmission. If you are not the intended recipient, please immediately delete it and all copies of it from your system, destroy any hard copies of it and notify the sender. You must not, directly or indirectly, use, disclose, distribute, print, or copy any part of this message if you are not the intended recipient. FXDirectDealer, LLC reserves the right to monitor all e-mail communications through its networks. Any views expressed in this message are those of the individual sender, except where the message states otherwise and the sender is authorized to state them. Unless otherwise stated, any pricing information given in this message is indicative only, is subject to change and does not constitute an offer to deal at any price quoted.