EUR/USD (daily chart) as of October 26, 2012, has made a tentative downside breach of a bullish support trend line that extends back to the July 1.2040 2-year low. This unconfirmed breakdown occurs as the 100-day and 200-day moving averages have just touched, preparing for a possible crossover to the upside for the first time since the downside crossover occurred one year ago. This moving average cross resides just above the key 1.2800 support region, and serves as potential support for any further bearish extension. The 1.2800 level and the 200-day moving average have together served as a strong support confluence twice within the last month. To the upside, a bounce off support (supplied by either the trendline, moving average, or 1.2800 level) that moves back above the key 1.3000 psychological level could once again rise towards a resistance retest of the September 1.3170 high, with a longer-term potential upside objective around the 1.3500 price region.
James Chen, CMT
Chief Technical Strategist
FX Solutions

Forex trading involves a substantial risk of loss and is not suitable for all investors.  FX Solutions LLC (“FXS”) is compensated through a portion of the bid/ask spread. This information is being provided only for general market commentary (based on technical analysis) and does not constitute investment trading advice.  Certain information contained herein has been obtained from sources that FXS believes to be reliable; however, FXS cannot guarantee the accuracy of such information, assure its completeness, or warrant such information will not be changed. The information contained herein is subject to change without notice. FXS has no obligation to update any or all of such information; nor do we make any express or implied warranties or representations as to the completeness or accuracy or accept responsibility for errors. These materials are not intended as an offer or solicitation with respect to the purchase or sale of any financial instrument and should not be used as the basis for any investment decision. Past performance is not necessarily indicative of future results. No determination has been made regarding the appropriateness of any information contained herein. Due to various risks and uncertainties, actual events or results may differ materially from those reflected or contemplated herein. FXS expressly disclaims any loss or profits that may arise from any use of the information contained in or derived from this commentary. FXS and its affiliates may engage in transactions that are inconsistent with the views expressed herein.  FXS does not endorse nor is it responsible for any third-party posts related to this material.

For more forex information, go to