(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.)
6/29/2010 - EUR/USD - Price action on EUR/USD, a daily chart of which is shown, has finally re-asserted its bearish stance (at least for the time being) as of Tuesday (6/29/2010) morning and descended once again to approach key support in the 1.2150 price region, establishing a new two-week low in the process. This bearishness occurs after price action made a steep two-week bullish correction (starting in early June) within the overall prevailing downtrend, broke down below that correction, and then consolidated in a slightly bullish trading range for several days late last week. Currently, the key downside level to watch resides in the noted 1.2150 support region, an important prior support level. If price manages to breakdown and close below that level, it should be a significant bearish indication, with the next major downside target residing in the psychologically-important 1.2000 price region.
James Chen, CMTChief Technical StrategistFX Solutions
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