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Chart of the Day - 12/22/2008 - EUR/USD
12/22/2008 – EUR/USD – Within the context of the remarkable bullish run of the past couple of weeks, price action on EUR/USD (a daily chart of which is shown) has retraced to a significant support/resistance level. This level is supported by a key prior S/R zone around 1.3830-1.3880 region. It is also supported by an important 38.2% Fibonacci retracement level (the low-to-high retracement span being measured from the low on 12/4/2008 to the high reached just last week on 12/18/2008). A strong break below this significant support level could target further support around the 1.3650 level, which coincides with a 50% retracement of the recent bullish run. Any clear bounce off the current support level could target further resistance in the 1.4300 region. 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; downtrend line in red; horizontal support/resistance lines in yellow; chart pattern in magenta; Fibonacci retracements in grey; 50-period simple moving average in light blue.)