Technical Trading Tips and Techniques by 
EUR/USD (a daily chart of which is shown) adhered to a short-term uptrend support line this past week, as it recovered partially from a substantial drop the week before. This drop can be considered a pullback to the uptrend support line, which extends from the 1.2455 low hit on 3/4/2009. When measuring this pullback, or dip, from a Fibonacci perspective, it represents almost precisely a 50% retracement of the bullish run from 1.2455 to 1.3736. Currently re-approaching a long-term downtrend resistance line extending from the double-top high of 1.6037 hit on 7/15/2008, price has recently been taking on somewhat of a bullish bias. For the upcoming week of April 6-10, 2009, the main event to watch for would be any strong break and close above this long-term downtrend line which, with follow-through, should target further resistance around the last double-tested high of 1.3735. And any significant break above that level would confirm a bullish continuation of the new uptrend. To the downside, the noted short-term uptrend support line should continue to serve as dynamic support for the pair, at least for the near-term.
James Chen, CTA, CMT
For more information on my newly-released book, Essentials of Foreign Exchange Trading (Wiley), please click here.
thanks for your guiding articles on fx trading.
please i will appreciate if you could explain to me what near term is all about.
i am not that experienced in fx business and each time near term is mentioned, i am always stocked.
thank you for your understanding
please pardon me if i have used wrong channel to request for solution to the problem i have.
best regards
Hi Oleyemi,
Thanks for your question and for visiting this blog. Near-term simply means the short-term, foreseeable future. It is the immediate future as opposed to the distant future. Hope that helps. Thanks, Oleyemi!
James Chen