width=598

(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.)

9/22/2009 - EUR/USD - Bullish price action on EUR/USD, a daily chart of which is shown, has just hit a precise one-year high, as Tuesday's (9/22/2009) high was shy of the high reached a year ago on 9/23/2008 by just a few pips. In the process, price has approached strong historical resistance in the 1.4900-1.4950 price region, which has been respected several times in the past. Overall, this key currency pair continues to be entrenched in a strong uptrend that has been firmly in place since the March lows. The general directional bias continues to be bullish on this pair, even as downside corrections are expected in the process of reaching for new long-term highs. Any substantial breakout above the 1.4900-1.4950 resistance region would be an exceptionally bullish indication, with a further key upside resistance target in the 1.5280 price region. Within the context of the current uptrend, strong downside support continues to reside in the 1.4450 price region.

James Chen, CMT
Chief Technical Strategist
FX 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.