(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.)
3/24/2010 - EUR/USD - Price action on EUR/USD, a daily chart of which is shown, has displayed a strong bearishness in line with the overall prevailing downtrend, establishing a new 10-month low in the process and confirming a downtrend continuation. After the key 1.3800 resistance was tested and respected several times last week, price broke down below a well-formed bearish rising wedge pattern. After that breakdown, continued bearish price action followed through to break down tentatively below the important 1.3400 support region as of Wednesday (3/24/2010). In line with the strong current downtrend that has been in place since the December high, a bearish bias continues to prevail. A key support target to the downside resides around the 1.3100 price region. To the upside, the broken 1.3400 price region should now serve as near-term resistance within the context of the strong downtrend.
James Chen, CMT
Chief Technical Strategist
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