Forex Trading Technical Analysis (2010/08/02) EUR/USD Breaks Out, Targets 1.3400
(Please click on the forex chart thumbnail to enlarge)
8/02/2010 Forex Trading Technical Analysis (FXpath.com) – EUR/USD (a 4-hour chart of which is shown) as of Monday (8/02/2010) morning has made a dramatic upside breakout above last week’s high in the 1.3105 price region to approach 1.3200 resistance, establishing almost a new 3-month high in the process. This occurs within the context of a well-formed parallel uptrend channel extending from the late June lows. EUR/USD’s bullish stance of the last two months appears poised to continue into this week. In the event of a strong breakout above 1.3200 resistance, a key upside resistance target resides in the 1.3400 price region, which is both a prior support/resistance level as well as an approximate 138.2% Fibonacci extension of the bullish run from the bottom of the current trend parallel channel to the prior 1.3026 high. Downside support now tentatively resides around the broken 1.3100 price region.
(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)
- Click here for my book, Essentials of Foreign Exchange Trading (Wiley).
- Click here for my book, Essentials of Technical Analysis for Financial Markets (Wiley).
- Click here for my video DVD set, High-Probability Trend Following in the Forex Market (FXstreet).
No related posts.
Please leave a comment below or subscribe to the feed and get articles like this delivered automatically to your feed reader.
[...] the context of a well-formed parallel uptrend channel extending from the late June lows … Full story Tags: Dollar, EUR, EUR/USD, Euro, USD If you like this post and would like to receive updates from [...]