(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.)
3/03/2009 ï¿½ EUR/USD ï¿½ As of Tuesday morning, price action on EUR/USD (a daily chart of which is shown) has fallen back down near the support established last week, just above the 1.2500 level. Still technically bearish, this key currency pair is teetering on breaking down below this 1.2500 level, which would confirm a downtrend continuation. In this event, the next immediate support to the downside resides around the 1.2330 region, the level of the last major, long-term low. To the upside, the 1.3000 price region, which represents the last swing high retracement, should now serve as significant resistance within the context of the current downtrend.
James Chen, CMT
Chief Technical Strategist
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