Technical Trading Tips and Techniques by 
EUR/USD (a daily chart of which is shown) displayed some significant bullishness in the past week that extended all the way up to around the key 1.3300 resistance level before retreating this past Friday. Currently, this 1.3300 level coincides approximately with a major downtrend resistance line extending from the 2nd test of 1.6 all the way back in July. Therefore, the upcoming week of April 27 to May 1 finds the pair at a critical juncture. Will EUR/USD respect both static and dynamic resistance by reversing the bullish retracement of last week and ultimately targeting February and March lows. Or will the pair breakout above 1.3300 and the long-term downtrend resistance line, potentially to end the overall downtrend that has been in place for many months now. Price action early in the upcoming week should provide some clear-cut direction. Any strong breakout above 1.3300 and the long-term downtrend resistance line should jeopardize the downtrend and potentially target further resistance in the 1.3550 price region. If price is rejected at resistance and turns decisively to the downside in the beginning of the week, a clear target below 1.3100 support resides around the key 1.2900 price level, the approximate region of the last swing low.
UPDATE: As of early Monday (4/27/2009) morning, price has respected the 1.3300 resistance at the week’s open, and has approached the noted 1.3100 support.
UPDATE 2: As of Monday (4/27/2009) afternoon in New York, price has dropped well below 1.3100 support, and still appears bearish. Further downside support is as outlined above.
James Chen, CTA, CMT
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