Technical Trading Tips and Techniques by 
(Please click on the accompanying chart to enlarge.)
As shown on the accompanying EUR/USD daily chart, as of early Monday morning (New York session), price on this key pair has retreated substantially from resistance during early European session today. In this case, resistance is in the form of the long-term uptrend line that previously acted as strong support and was broken down in the first week of September. A couple of days subsequent to that breakdown, price pulled back up to the line and retreated for the first time. The current early morning retreat from this resistance line can also be considered a tentative pullback move. The question now is whether there will be an eventual downward continuation, or if we’ve already reached a major bottom in this pair. Any strong break below the 1.3880 support level would confirm a downward continuation after pullback, and should eventually target further long-term support in the 1.3550 region. A sustained move back up, on the other hand, should meet continued resistance at or near the same uptrend line mentioned above.
- James
James Chen is the Chief Technical Analyst at FX Solutions, a leading Forex broker. He is also a registered Commodity Trading Advisor (CTA) and a Chartered Market Technician (CMT) Level 3 candidate. At FX Solutions, Mr. Chen writes daily currency analysis, conducts forex trading seminars, and has authored numerous articles on currency trading and technical analysis for major financial publications. His upcoming book, Essentials of Foreign Exchange Trading
Hi James,
Share with us you view for nzd/usd and aud/usd.thanks
Hi St_Fx,
Thanks for your comment. Here is a link to my current analysis on the AUD/USD, which is Monday’s Chart of the Day: http://www.fxstreet.com/technical/analysis-reports/chart-of-the-day/2008-09-15.html . I will be posting analysis on NZD/USD later. Thanks, St_Fx!
- James
Is it possible for the price to go down to 1.3550 ?
Looks negative to me…
Can you explain to me why it can go down to such point ?
Hi Hasri,
Thanks for your comment! Yes, the 1.3550 is entirely possible, but it would be contingent upon a break below the last turn at 1.3880. If this level were to be broken down, a confirmation of the pullback and downward continuation will have occurred, and the 1.3550 would be a distinct medium-term possibility. Whether that will happen now remains to be seen. But please keep in mind that the 1.3550 level is only around 650 pips away as of this writing, which can be reached relatively quickly in the current environment. Thanks, Hasri.
- James