Forex Trading Technical Analysis (2010/08/27) EUR/USD Leans Toward Bearish Trend Resumption
(Please click on the forex chart thumbnail to enlarge)
8/27/2010 Forex Trading Technical Analysis (FXpath.com) – EUR/USD (a 4-hour chart of which is shown) as of Friday (8/27/2010) has begun once again to lean towards a resumption of the bearish trend that originated in early August. This occurs after price hit a low just below 1.2600 earlier in the week and then made a bullish retracement, forming a corrective pattern with flag-like properties that could potentially indicate further bearishness ahead if this continuation pattern is broken significantly to the downside. In the event of this significant breakdown, price action could begin to target key downside support in the 1.2500 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)
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[...] James Chen sees EUR/USD lean towards bearish ternd resumption. [...]