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EUR/USD - Pronounced Support Breakdown

Posted on February 17, 2009 at 13:02 in Analysis by James Chen

Price action on EUR/USD has finally made enough of a bearish move to break cleanly below the strong uptrend support line that it had adhered to since the long-term low (around 1.2330) was hit in late October. Since that low was reached, this line has supported price at least six times. As of Tuesday morning, as shown on the accompanying EUR/USD daily chart, price has made a pronounced breakdown, and is currently approaching further support around the previously noted 1.2550 region. Any subsequent breakdown below this support level could target long-term support around the 1.2330 region, the level of October’s 2+ year low.

8 Responses to “EUR/USD - Pronounced Support Breakdown”

on 17 Feb 2009 at 1:27 pm1Chined

I agree with this analysis. I will love to meet you and you can contact me with my email address.Thanks
on 17 Feb 2009 at 4:15 pm2Yohay

It was looking to break for a long time, and now it made it. Is it due to the warnings about bad loans to Eastern European countries?
on 17 Feb 2009 at 5:27 pm3Christian

James,

Fancy forwarding your posts on stocktwits? large fx community in there, we could get your posts in realtime.
it is all automatable with wordpress blogs…
on 17 Feb 2009 at 6:00 pm4James Chen

Hi Chined,

Thanks for your comments!

James Chen
on 17 Feb 2009 at 6:03 pm5James Chen

Hi Christian,

Thanks for your suggestion. Yes, I will see how that can be done, and email you shortly. Thanks!

James Chen
on 17 Feb 2009 at 6:08 pm6James Chen

Hi Yohay,

Thanks, as always, for your comments. I tend to stick to the technicals over the fundamentals. The fact that it broke in such a dramatic fashion was a very significant technical event. But you are more than welcome to post your thoughts on the fundamental reasons behind the move. Thanks, Yohay!

James Chen
on 18 Feb 2009 at 10:37 am7A Trader

The real question is did you trade the move lower? or hopefully you are still short from the 1.4600 area rally that took place. Personally I believe eurusd goes higher from 1.25/1.24 area to 1.34+ Then much lower.
on 18 Feb 2009 at 3:05 pm8James Chen

Hi Trader,

Thanks for your comment! I have been bearish on this pair for quite some time now, looking for price at least to target long-term support around the 1.2330 region. Where it may go from there will depend upon a lot of different fundamental factors. Thanks for your projection!

James Chen

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8 Responses to “EUR/USD - Pronounced Support Breakdown”