(Please click on the accompanying chart to enlarge.)
As seen on this EUR/USD 4-Hour chart (early Wednesday morning, New York session), price has formed a rough flag formation, which hints that price has pulled back in preparation for a possible upside continuation run. Watch for any strong break of this flag. In this event, significant resistance to the upside resides around the top of the flag, around the 1.4865 region.
- 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 (John Wiley & Sons), will be released in early 2009.
Technical Trading Tips and Techniques by 

