Price action on EUR/JPY, a daily chart of which is shown, has reached down and made a tentative bounce off key support in the general 122.00 price region. This occurs after the currency pair broke a long sideways consolidation by breaking down below another key support level in the 127.00 price region. The substantial recent bearishness in the pair established a new 11-month low late last week before making the current tentative bounce. Despite the bounce, price action is currently following a very steep medium-term downtrend extending from the mid-January highs. For more technical analysis on this currency pair, please click here for Tuesday’s (2/09/2010) Chart of the Day.

- James Chen, CTA, CMT

* For information on my DVD set, High-Probability Trend Following in the Forex Market, please click here.
* For information on my book, Essentials of Foreign Exchange Trading (Wiley), please click here.

Price action on GBP/USD, a daily chart of which is shown, has finally begun to show a bearish emergence from the sideways consolidation that has characterized this currency pair on a long-term basis for several months now. A clean breakdown below the 1.5700 support region last Friday represented a tentative breakdown below the consolidation, in line with a medium-term downtrend that has been in place since mid-November 2009. In the process of this breakdown last Friday, the pair has established a new 8-month low near the bottom of the noted medium-term parallel downtrend channel. For more technical analysis on this currency pair, please click here for Monday’s (2/08/2010) Chart of the Day.

- James Chen, CTA, CMT

* For information on my DVD set, High-Probability Trend Following in the Forex Market, please click here.
* For information on my book, Essentials of Foreign Exchange Trading (Wiley), please click here.

Price action on EUR/USD, a daily chart of which is shown, has displayed continued marked bearishness recently, strongly confirming a new downtrend in the pair. This new downtrend was initiated after the previous long-term uptrend was broken decisively to the downside in early December. After that breakdown, the bearish trend has been characterized by several short-term bullish retracements and consolidations in the form of inverted flag patterns, but each time these trend interruptions were broken strongly to the downside. For more technical analysis on this currency pair, please click here for Friday’s (2/05/2010) Chart of the Day.

- James Chen, CTA, CMT

* For information on my DVD set, High-Probability Trend Following in the Forex Market, please click here.
* For information on my book, Essentials of Foreign Exchange Trading (Wiley), please click here.

Just a quick announcement that I will be at the New York Traders Expo being held at the Marriott Marquis Hotel in Times Square, New York City on February 15 and 16 (http://www.moneyshow.com/nyot/main.asp?scode=012453).

I will be giving a live seminar covering forex trading methods on Monday, Feb 15 at 3:45 PM.

Also, I will drop by the FX Street booth to sign copies of my new DVD set, High-Probability Trend Following in the Forex Market, on Tuesday, Feb 16 at 11:00 AM.

For the rest of the expo I will be at the FX Solutions booth and will be happy to speak at length with anyone that would like to drop by.

Hope to see everyone there!

- James Chen, CTA, CMT

* For information on my DVD set, High-Probability Trend Following in the Forex Market, please click here.
* For information on my book, Essentials of Foreign Exchange Trading (Wiley), please click here.

Price action on AUD/USD, a daily chart of which is shown, continues to languish in a sideways consolidation, although the last couple of weeks have been decidedly bearish for the pair. After price reached strong resistance around 0.9325 in mid-January (just shy of the 15-month high around 0.9400 that was hit in mid-November 2009), the directional bias has been steeply bearish, forming a well-defined short-term downtrend resistance line. For more technical analysis on this currency pair, please click here for Wednesday’s (2/03/2010) Chart of the Day.

- James Chen, CTA, CMT

* For information on my DVD set, High-Probability Trend Following in the Forex Market, please click here.
* For information on my book, Essentials of Foreign Exchange Trading (Wiley), please click here.

Price action on EUR/USD, a 4-hour chart of which is shown, has made yet another bullish retracement within the context of the new overall downtrend. The current leg of this new downtrend extends from the January 13th high, and has formed a valid bearish resistance trendline. Within the context of this downtrend resistance line, price has made several breakdowns of both short-term uptrend support lines and horizontal support levels. As might be expected, these breakdowns have continued the dominant downtrend with significant downside follow-through. If the current leg of the prevailing downtrend is to continue, a key continuation trigger would be a breakdown below the current short-term uptrend support line. For more technical analysis on this currency pair, please click here for Tuesday’s (2/02/2010) Chart of the Day.

- James Chen, CTA, CMT

* For information on my DVD set, High-Probability Trend Following in the Forex Market, please click here.
* For information on my book, Essentials of Foreign Exchange Trading (Wiley), please click here.

The GMMA, or Guppy Multiple Moving Averages, was developed by Daryl Guppy, an Australian trader. This multi-faceted indicator combines two different sets of moving averages. One set (the longer-term moving averages) represents long-term traders, and the other set (the shorter-term moving averages) represents short-term traders. There are several ways to interpret the GMMA, the most prominent of which has to do with looking at the separation of the moving averages as well as the separation between the two sets of moving averages. These separations reveal vital information on trend strength, both short-term and long-term, and potential impending changes in trend. For more information on this dynamic indicator, please click on the following link: http://www.guppytraders.com/gup329.shtml .

- James Chen, CTA, CMT

* For information on my DVD set, High-Probability Trend Following in the Forex Market, please click here.
* For information on my book, Essentials of Foreign Exchange Trading (Wiley), please click here.

Price action last week on spot silver, a daily chart of which is shown, broke down below a rough head & shoulders pattern neckline as well as key support in the 16.70 price region. At the end of last week, price had reached the noted downside support target of 16.00, approaching the bottom support border of a key parallel uptrend channel. With a good bounce to begin this new week, silver has tentatively respected the 16.00 support level. Short-term upside resistance on this bounce tentatively resides, once again, in the 16.70 price region. For more technical analysis on silver, please click here for Monday’s (2/01/2010) Chart of the Day.

- James Chen, CTA, CMT

* For information on my DVD set, High-Probability Trend Following in the Forex Market, please click here.
* For information on my book, Essentials of Foreign Exchange Trading (Wiley), please click here.

Recent bearish price action on spot gold, a daily chart of which is shown, has descended all the way down to key support around the 1070 price region, forming a tentative double bottom matching the late December low. In the process, price has also reached down to an important uptrend support line that has defined the gold uptrend for at least well over a year. For more technical analysis on gold, please click here for Friday’s (1/29/2010) Chart of the Day.

- James Chen, CTA, CMT

* For information on my DVD set, High-Probability Trend Following in the Forex Market, please click here.
* For information on my book, Essentials of Foreign Exchange Trading (Wiley), please click here.

Price action on EUR/USD, a daily chart of which is shown, has finally made a tentative breakdown below the 1.4000 support/resistance and psychological barrier, establishing a new 6-month low for the pair. This occurs after a slight bullish retracement that occurred several days ago which formed a small flag-like consolidation pattern. The current tentative bearish breakdown indicates a potential continuation in the new overall downtrend that began after the previous long-term uptrend was broken to the downside in early December. For more technical analysis on this currency pair, please click here for Thursday’s (1/28/2010) Chart of the Day.

- James Chen, CTA, CMT

* For information on my DVD set, High-Probability Trend Following in the Forex Market, please click here.
* For information on my book, Essentials of Foreign Exchange Trading (Wiley), please click here.