(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; uptrend lines in green; horizontal support/resistance levels in yellow; 200-period simple moving average in light blue.)
5/28/2008 – EUR/USD – Within the context of the current horizontal consolidation range on the EUR/USD daily chart, as shown, price has formed a short-term uptrend bounded by two short parallel lines (in dotted green). Traders that are betting on a dollar recovery, or at least a retracement, are waiting for a clean breakdown of the uptrend support line. In this event, strong support resides around the base that has formed within the last couple of months in the 1.5280 region. Oscillators like the displayed Stochastics are lending strength to this downward bias, as they are emerging down below the 80 line from heavily overbought.
Chief Technical Analyst
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