(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.)
8/25/2009 EUR/USD Price action on EUR/USD, a daily chart of which is shown, has continued to traverse up a parallel uptrend channel that has been in place since early June. Late last week, price was able to break out above a short-term, bearish counter-trend line, and was targeting the top of the channel once again. But since the breakout, the pair has stalled and consolidated. EUR/USD is still very much entrenched in a medium-term uptrend that extends from early March. A continuation of this uptrend would be confirmed on a break above 1.4445, the highest high in the current uptrend and a 7+ month high. In this event, the top of the current parallel uptrend channel is a significant dynamic resistance target. Dynamic downside support continues to reside at or near the bottom of the current parallel uptrend channel.
James Chen, CMT
Chief Technical Strategist
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