Forex Trading Technical Analysis (2010/07/26) EUR/USD Reaches for Resistance
(Please click on the forex chart thumbnail to enlarge)
7/26/2010 Forex Trading Technical Analysis (FXpath.com) – EUR/USD (a 4-hour chart of which is shown) as of Monday (7/26/2010) has ascended to reach for key resistance around 1.3026, which represents the top of a shooting star candle that established the 2-month high for the pair just last week. This occurs within the context of an accelerated uptrend channel that originally stems from the 1.1875 low in early June. In the event of a breakout above the noted 1.3026 resistance, price should target immediate further resistance in the important 1.3100 price region, followed by an additional upside target around 1.3200. Within the context of the current uptrend, a trend change/reversal to the downside could potentially be in the making in the event of a subsequent strong drop below the 1.2800 price region, which represents the approximate level of the last major swing low within the uptrend.
(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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