width=398(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; 50-period simple moving average in light blue.)

11/13/2009 - EUR/USD - Price action on EUR/USD, a daily chart of which is shown, has corrected back down to an uptrend support line after falling short of re-testing the 14-month high just above 1.50. Until a significant downside breach of this support trendline occurs, this currency pair is still very much in uptrending mode. The key upside level to watch is still in the region of the 1.5060 long-term high, as any significant breakout above this level would confirm a continuation of the uptrend that has been in place since March. In the event of that breakout, the 1.5300 price region remains as an important further resistance area to the upside, followed by the key bullish target of 1.60. As mentioned, the noted uptrend support line extending from March is currently still holding. But in the event of any substantial breakdown next week, the prevailing uptrend would be seriously threatened and price could subsequently move down to target strong support in the 1.4450 support/resistance region.

James Chen, CMT
Chief Technical Strategist
FX Solutions

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