Forex Trading Technical Analysis (2010/08/11) EUR/USD Trend Change Targets 1.27 Downside
(Please click on the forex chart thumbnail to enlarge)
8/11/2010 Forex Trading Technical Analysis (FXpath.com) – EUR/USD (a 4-hour chart of which is shown) as of Wednesday (8/11/2010) has dramatically furthered its fall after this week’s bearish breakdown of the uptrend channel that has been in place since late June. In the process, price has established a new 2+ week low. After breaking down below the noted parallel uptrend channel, price action briefly retraced back up to the channel’s lower border on news, but then plunged soon after and broke down below several key support levels. With its break below the key psychological 1.3000 level, the bearish bias on this week’s trend change has been confirmed. A key downside support target on this breakdown and bearish follow-through momentum resides in the 1.2700 price region. A breakdown below that support level would potentially confirm a trend reversal back to the downside.
(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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