Chart of the Day – 8/11/2010 – EUR/USD

Filed in Gold, silver, ubs by on August 11, 2010 0 Comments

8/11/2010 – EUR/USD – Price action on EUR/USD (a 4-hour chart of which is shown) as of Wednesday (8/11/2010) has dramatically furthered its fall after this week’s bearish breakdown of the uptrend channel that has been in place since late June. In the process, price has established a new 2+ week low. After breaking down below the noted parallel uptrend channel, price action briefly retraced back up to the channel’s lower border on news, but then plunged soon after and broke down below several key support levels. With its break below the key psychological 1.3000 level, the bearish bias on this week’s trend change has been confirmed. A key downside support target on this breakdown and bearish follow-through momentum resides in the 1.2700 price region. A breakdown below that support level would potentially confirm a trend reversal back to the downside. 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. (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; chart patterns in white; 50-period simple moving average in light blue.) Attached Images

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Chart of the Day – 8/11/2010 – EUR/USD

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