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; chart patterns in white; 50-period simple moving average in light blue.)

6/01/2010 - EUR/USD - Price action on EUR/USD, a daily chart of which is shown, has once again descended as of Tuesday morning (6/01/2010) New York session. Today's drop tentatively broke down below the prior 1.2140 short-term support, establishing yet a new 4-year low for the pair around the 1.2110 price region. This occurs within a continuing strong and steep downtrend. At the current juncture, although technically within a short-term consolidation, price appears to be steadily pushing its way down towards its key 1.2000 support target. Any further subsequent breakdown below 1.2000 within the context of the confirmed downtrend continuation could potentially target further downside in the 1.1800 support price region.

James Chen, CMTChief Technical StrategistFX Solutions

IMPORTANT NOTICE: These comments are for information purposes only. The information contained on this document does not constitute a solicitation to buy or sell by FX Solutions, LLC., and/or its affiliates, and is not to be available to individuals in a jurisdiction where such availability would be contrary to local regulation or law. Opinions, market data, and recommendations are subject to change at any time. Forex trading involves substantial risk of loss and is not suitable for all investors.