(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; chart patterns in white; 50-period simple moving average in light blue.)
3/10/2009 € EUR/GBP € In a significant burst of euro bullishness, EUR/USD (a daily chart of which is shown) has broken out cleanly above both a large triangle pattern consolidation as well as a downtrend resistance line extending from the historical record high around 0.9800. In the process, price has also confirmed the uptrend support line extending from the late October 2008 low. In the course of the bullish breakout that began on Monday, price went on further to break out easily above the key 0.9100 resistance region, which should now act as near-term support for the pair. Any continued bullishness off yesterday€™s breakout could eventually target further major resistance in the key 0.9500 price region, although substantial consolidation and/or retracement should prevail before that level is potentially reached.
James Chen, CMT
Chief Technical Strategist
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