Chart of the Day – 8/20/2010 – EUR/USD

Filed in Gold, Gold Bullion prices, ubs by on August 20, 2010 0 Comments

8/20/2010 – EUR/USD – Price action on EUR/USD (a 4-hour chart of which is shown) as of Friday (8/20/2010) morning has broken down below multiple support levels, including a clean breakdown of an important uptrend support line extending back to the early June low of 1.1875 and a tentative break below key support at 1.2700, to hit a fresh one-month low. These support levels were noted in EUR/USD analysis earlier this week, when the trendline had been respected. The current breakdown places the 2+ month uptrend in EUR/USD at considerable risk of changing/ending. With continued bearish momentum, the tentative breakdown below 1.2700 could prompt price action to target further downside support in the key 1.2500 price region. The underside of the just-broken uptrend line should now serve as dynamic upside resistance in the event of a significant bullish pullback/correction. 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

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Chart of the Day – 8/20/2010 – EUR/USD

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