(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; uptrend lines in green; horizontal support/resistance lines in yellow; 200-period simple moving average in light blue.)
7/03/2008 – EUR/USD – Price action on the EUR/USD daily chart, as shown, took a major turn down today as a result of the Non-Farm Payrolls report in the morning. This downturn occurs at a significant technical resistance level around 1.5900, which is represented on the chart by the horizontal support/resistance line marked A. This line resides just around 100 pips below the all-time high in the pair. Price has been technically overbought for this whole week (as shown by oscillators like the displayed Stochastics) so the current turn down at resistance is a long-awaited, welcomed event for technical traders and analysts. In the event of a continuation of this down move, the first support to the downside resides around the 1.5650 region, and then further down at the intermediate uptrend line (in green).
Chief Technical Analyst
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