EUR/USD (daily chart) has furthered its decline that has been entrenched since the middle of October, and has established a new 2-month low. This bearish trend has broken down below several important technical levels, including the key 1.3000 psychological level, a bullish support trend line extending from the July 1.2040 2-year low, the 200-day moving average, and the 1.2800 prior support level. This short-term downtrend also conforms to the long-term bearish trend that has been in place since the May 2011 1.4935 high. The current bearishness can be seen as a potential end to the July-October upside correction, and a possible resumption of the entrenched long-term downtrend. With potential upside resistance residing around the 1.2800 prior support level, price is approaching the key 1.2600 level to the downside. In the event of a breakdown below 1.2600, the next major support objective potentially resides around the important 1.2300 level.
James Chen, CMT
Chief Technical Strategist
FX Solutions
Forex trading involves a substantial risk of loss and is not suitable for all investors. FX Solutions LLC (“FXS”) is compensated through a portion of the bid/ask spread. This information is being provided only for general market commentary (based on technical analysis) and does not constitute investment trading advice. Certain information contained herein has been obtained from sources that FXS believes to be reliable; however, FXS cannot guarantee the accuracy of such information, assure its completeness, or warrant such information will not be changed. The information contained herein is subject to change without notice. FXS has no obligation to update any or all of such information; nor do we make any express or implied warranties or representations as to the completeness or accuracy or accept responsibility for errors. These materials are not intended as an offer or solicitation with respect to the purchase or sale of any financial instrument and should not be used as the basis for any investment decision. Past performance is not necessarily indicative of future results. No determination has been made regarding the appropriateness of any information contained herein. Due to various risks and uncertainties, actual events or results may differ materially from those reflected or contemplated herein. FXS expressly disclaims any loss or profits that may arise from any use of the information contained in or derived from this commentary. FXS and its affiliates may engage in transactions that are inconsistent with the views expressed herein. FXS does not endorse nor is it responsible for any third-party posts related to this material.
Share
