Forex Technical Analysis (2010/06/23) EUR/USD Breaks Down Further
(Please click on the forex chart thumbnail to enlarge)
6/23/2010 Forex Technical Analysis (FXpath.com) – EUR/USD, a daily chart of which is shown, continues to display some cautious bearishness as of Wednesday (6/23/2010) morning after breaking down below the uptrend support line that represents the bullish correction of the last two weeks. In the event of further bearishness off this breakdown, price could soon start making new long-term lows below the 4-year low of 1.1875 hit in early June. Currently, a key downside level to watch resides in the 1.2150 price region, a recent prior support/resistance level. In the event of a breakdown below this level, the 1.2000 region should be a clear downside target, with the noted 1.1875 long-term low serving as a further downside support target. Only on a breakdown below 1.1875 would a continuation of the strong current downtrend be confirmed.
UPDATE: AS OF THURSDAY MORNING (6/24/2010) NEW YORK SESSION, PRICE ACTION HAS MADE SOMEWHAT OF A BULLISH CONSOLIDATION, FAILING AS OF YET TOÂ FOLLOW-THROUGH ON THE BREAKDOWN OF THE PREVIOUS BULLISH CORRECTION. A KEY BREAKDOWN LEVEL TO WATCH CONTINUES TO RESIDE IN THE 1.2150 PRICE REGION, AND ALL DOWNSIDE TARGETS REMAIN VALID. UPSIDE RESISTANCE CONTINUES TO RESIDE JUST BELOW THE KEY 1.2500 LEVEL.
(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.)
James Chen, CTA, CMT (bio)
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Related posts:
- Forex Trading Technical Analysis (2010/08/20) EUR/USD Breaks Down Multiple Support Levels
- Forex Technical Analysis – EUR/USD Correction to 1.2150
- Forex Technical Analysis – 2010-06-01 – EUR/USD Breaks Support Yet Again for New 4-Year Low
- Forex Trading Technical Analysis (2010/08/10) EUR/USD Tentatively Breaks Down Uptrend
- Forex Technical Analysis (2010/06/30) GBP/JPY Breaks Down Uptrend Line, Falls to Support
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