(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; 50-period simple moving average in light blue.)
7/29/2009 € EUR/USD € Price action on EUR/USD, a 4-hour chart of which is shown, has descended down to a key point of support confluence. This confluence is made up of a crossing of two trendlines € one is a downtrend line extending from the major 1.4335 high hit on 6/3/2009 (which was broken to the upside less than two weeks ago), and the other is an uptrend support line extending from the lows in late April. In the event that this confluence is respected with a pronounced bounce, the clear upside resistance target resides around the noted 1.4335 uptrend high. On any breakdown below this support confluence, immediate further support resides in the 1.4050 price region. And any subsequent breakdown below that level could target yet further strong support in the 1.3830 support/resistance price region.
James Chen, CMT
Chief Technical Strategist
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