Chart of the Day – 5/11/2010 – EUR/USD

Filed in Gold, Gold Bullion prices, ubs by on May 11, 2010 0 Comments

5/11/2010 – EUR/USD – Price action on EUR/USD, a daily chart of which is shown, has begun once again to resume its bearish stance after having made a sharp bullish correction up to approach strong resistance in the 1.3100 price region in the beginning of this week. The current bearish resumption occurs after last week’s dramatic plummet down to approach key support in the 1.2500 price region that established a new 14-month low for the pair. Although Monday’s bullish correction up to 1.3100 was swift and substantial, it quickly retreated and has turned out thus far to be a failed recovery. The technical bias for this currency pair currently remains bearish in line with the accelerated overall downtrend. Clearly, the noted 1.2500 key level remains the downside level to watch, as a breakdown below it would confirm a downtrend continuation. If this breakdown occurs, price could potentially target further downside support in the 1.2300 price region. To the upside, within the context of the strong current downtrend, key resistance resides in the 1.2900 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

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Chart of the Day – 5/11/2010 – EUR/USD

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