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.)

12/08/2009 - EUR/USD - Price action on EUR/USD, a daily chart of which is displayed, has shown strong signs of ending, or at least seriously interrupting, the strong uptrend that has prevailed in the pair since the March lows. The pair has not only made a bonafide breakdown of the steep uptrend support line that has been in place for much of the year, it has also just made a tentative breakdown below key support in the 1.4800 price region, establishing a new 1-month low in the process. Whether a true bearish trend reversal materializes still remains to be seen. Further bearishness on the current trend breakdown could potentially target strong support in the 1.4450 price region. Upside resistance continues to reside around the double-tested high in the 1.5140 region, which represents a 15-month high for the pair.

James Chen, CMT
Chief Technical Strategist
FX Solutions

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