The Fed’s future path still seems more bullish than the European Central Bank. If so, the yiel...
EUR/USD Breaks Support on Daily Chart
07/07/2009 9:55 am EST
Click to Enlarge
(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.)
Price action on EUR/USD, a daily chart of which is shown, has tentatively broken down below an uptrend support line extending from the late-April lows. This breakdown is significant, but does not yet place the pair in immediate jeopardy of breaking its overall uptrend.
This would occur only on a strong breakdown below the 1.3750 price region. Currently, the short-term bearishness in the pair is apparent, but price is still entrenched within a prolonged sideways consolidation, despite the trend line breakdown.
Further bearish follow through on this trend line break should target key support in the noted 1.3750 support/resistance region. To the upside, the 1.4335 resistance is still the key price level to watch, as a significant breakout above that level would confirm a clear uptrend continuation.
By James Chen, chief technical strategist, FX Solutions
Related Articles on FOREX
Trade idea: No guarantees here of course, but maybe it’s a small caution flag for dollar bulls...
As of August 2015, renminbi (RMB) in payments globally accounted for 2.8 percent of the total, the f...
Our favorite horse to ride here for a “correction” lower would be the euro. And we would...