Chart of the Day - 12/01/2009 – EUR/USD

12/01/2009 – EUR/USD – Although recent price action in the last few weeks has threatened on numerous occasions to break the longstanding uptrend in EUR/USD (a daily chart of which is shown), this currency pair continues to salvage the trend by recovering at the last moment with short bursts of bullishness. The current uptrend has been in place since the March lows, and price just hit a new 15-month high last week before reverting back to the area of the uptrend support line (and the 50-day moving average, which has served well as uptrend support for several months now). Currently, price has just made yet another bullish turn-up around the trendline (and moving average), and could now be targeting a re-test and potential breakout above the noted 15-month high (around 1.5143). Any strong breakout above this long-term high should target further upside resistance in the 1.5300 price region. To the downside, a potential trend change should be evident on a breakdown and close below the 1.4800 support/resistance region.

James Chen, CMT
Chief Technical Strategist
FX Solutions

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(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; 50-period simple moving average in light blue.)