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Chart of the Day - 12/11/2008 - EUR/USD
12/11/2008 – EUR/USD – Thursday’s price action on EUR/USD (a daily chart of which is shown) has made a decisive bullish break of the triangle consolidation that it had been entrenched in for the last month and a half. This eagerly anticipated breakout has reached up to the key 1.3250-1.3300 resistance target, as of this writing. This zone represents both a significant prior support/resistance level as well as a key 38.2% Fibonacci retracement level. Any substantial break above this price region (i.e., the 1.3300 level) would likely indicate that a significant upside correction could be in the midst of occurring. In this event, further major resistance to the upside should reside around the downtrend resistance line (in red), and then eventually, with any further upside momentum, the key 1.3880 level. A failure to break convincingly above the 1.3300 resistance zone, however, could mean an eventual retreat back down to support in the region of the triangle border. James Chen Chief Technical Strategist FX Solutions IMPORTANT NOTICE: These comments are for information purposes only. The information contained on this document does not constitute a solicitation to buy or sell by FX Solutions, LLC., and/or its affiliates, and is not to be available to individuals in a jurisdiction where such availability would be contrary to local regulation or law. Opinions, market data, and recommendations are subject to change at any time. Forex trading involves substantial risk of loss and is not suitable for all investors. (Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; uptrend line in green; downtrend line in red; horizontal support/resistance levels in yellow; chart pattern in magenta; Fibonacci retracement levels in grey; 50-period simple moving average in light blue.)