Forex Trading Technical Analysis (2010/08/10) EUR/USD Tentatively Breaks Down Uptrend
(Please click on the forex chart thumbnail to enlarge)
8/10/2010 Forex Trading Technical Analysis (FXpath.com) – EUR/USD (a 4-hour chart of which is shown) as of Tuesday (8/10/2010) Asian session has tentatively broken down below a key parallel uptrend channel that has been in place since the late June 1.2150 low. This breakdown occurs after price hit a high of 1.3332 late last week. This uptrend channel has defined much of the bullishness that has characterized this currency pair for the last three months. In tentatively breaking down below this uptrend channel, price has also tentatively broken down below the key 1.3200 price level. If this breakdown bearishness is sustained into Tuesday’s European and U.S. sessions, a potential change/reversal in the prevailing uptrend could have finally arrived. In the event of a breakdown below 1.3100, this bearishness will have been confirmed, with an immediate downside support target in the key 1.3000 psychological level.
UPDATE: AS OF TUESDAY (2010/08/10) MORNING NEW YORK SESSION, PRICE ACTION ON EUR/USD HAS HIT AND DIPPED UNDER THE 1.3100 PRICE REGION, AS NOTED ABOVE.
(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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[...] (a 4-hour chart of which is shown) broke down below a key uptrend support line on Monday, much like EUR/USD did during early Asian trading hours on Tuesday. In the case of AUD/USD, its uptrend line is a considerably precise and well-formed one that [...]