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Chart of the Day - 7/16/2008 - EUR/USD

16-07-2008 - FX Solutions  |   Forex Technical Analysis
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(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, SlowStochastics on 2nd pane; uptrend lines in green; horizontalsupport/resistance line in yellow; 200-period simple moving average inlight blue.)

7/16/2008 – EUR/USD – After reaching and slightly exceeding theall-time high resistance yesterday, price action on the EUR/USD dailychart, as shown, has made a tentative correction back down. Alltechnical indications were pointing towards this long-awaitedcorrection. And from purely a technical perspective, there appears thatthere may be some further room to retrace. Price has not yet reachedthe short-term uptrend support line (represented by the top greenline), which also coincides with a key 38.2% Fibonacci retracementlevel (the low-to-high retracement being measured from the swing low tosupport on 6/13/2008 to the all-time high reached just yesterday).Oscillators like the displayed Stochastics are also emerging down fromoverbought territory. In the event of this continued downwardretracement, the first level of support would clearly reside around theaforementioned uptrend support line, which, as mentioned, currentlycoincides with the 38.2% Fibonacci retracement level. In the event of abreakdown of this support, the next support area resides around the1.5600 region.

James Chen
Chief Technical Analyst
FX Solutions
Content Provided by:
FX Solutions
FX Solutions, LLC was founded in 2001 by two foreign exchange veterans with over 50 years combined experience. The Company is a leading online foreign exchange (forex) broker, operating as a market-maker to retail and institutional clients. With its focus on advanced trading technology solutions, th...
 
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