Price action on NZD/USD has been consolidating around major resistance in the 0.6600 price region for the last two weeks. This consolidation mirrors recent price action in other dollar-based currency pairs. Not only does the current resistance represent the key 0.6600 horizontal support/resistance region, it also represents a major long-term downtrend resistance line extending all the way back to March 2008. For more technical analysis on this currency pair, please click here for Friday’s (7/31/2009) Chart of the Day.

Within the context of a significant parallel downtrend channel, price action on USD/JPY has formed a counter-trend support trendline. The parallel downtrend channel extends from the 4/6/2009 major high, and price is currently approaching the top border of this channel. For more technical analysis on this currency pair, please click here for Thursday’s (7/30/2009) Chart of the Day.

Price action on EUR/USD has descended down to a key point of support confluence. This confluence is made up of a crossing of two trendlines. For more technical analysis on this currency pair, please click here for Wednesday’s (7/29/2009) Chart of the Day.

UPDATE: As of Wednesday (7/29/2009) mid-session in New York, price action has tentatively broken down well below the above-mentioned support confluence, as well as the 1.4050 support/resistance region.

Price action on GBP/USD has taken the rough formation of a cup-and-handle pattern. This is a long-term pattern that consists of a large “U”-shaped rounded bottom with a “handle” consolidation on the right-hand side of the pattern that is angled slightly to the downside. In this type of pattern, the event to watch for would be any strong breakout to the upside of the handle. For more technical analysis on this currency pair, please click here for Tuesday’s (7/28/2009) Chart of the Day.

Price action on USD/CAD, a daily chart of which is shown, has been fluctuating around major support in the key 1.0800 price region for the last couple of days. Without actually having made a true breakdown (or daily close) below this support region as of yet (7/28/2009 morning), price has tentatively dipped significantly below it. With a true breakdown potentially in the making, a major downside support target resides in the 1.0550 support/resistance price region. In the event of a support breakdown of this nature, a downtrend continuation off the key 38.2% upside retracement (the high-to-low retracement span being measured from the high on 3/9/2009 to the low on 6/1/2009) will have been confirmed.

- James Chen, CTA, CMT

* I will be giving a workshop at the Forex & Options Expo in Las Vegas, August 3rd. For more information: http://www.moneyshow.com/lvfx/WorkShopDetails.asp?wkspid=1C565A972C0E408C906EB11624490B12

* I will be key speaker at FXstreet.com’s International Traders Conference in Barcelona, Spain in October 2009 - for more information, please go to: www.traders-conference.com .

* For information on my book, Essentials of Foreign Exchange Trading (Wiley), please click here.

* Follow my intraday forex updates on Twitter: http://twitter.com/JamesChenFX

Price action on AUD/USD has finally reached up to (and was tentatively rejected by) key resistance in the 0.8260 price region, which represents the highest high in the current uptrend that was reached in early June. This level is of substantial technical importance, as the way in which price interacts with this support/resistance region should dictate whether or not there will be an uptrend continuation in the currency pair. For more technical analysis on this currency pair, please click here for Monday’s (7/27/2009) Chart of the Day.

EUR/USD (a daily chart of which is shown) broke out above the top border of an important triangle consolidation during the past trading week, only to retrace back for a re-test of that triangle border, and then to end the week in consolidation right above the triangle. This consolidation could potentially be a stopover before continuing up in the direction of the triangle break, and then eventually continuing the uptrend that has been in place since early March. If this is to be the case, a breakout above last week’s consolidation high of 1.4290, and then immediately above, a subsequent breakout above the uptrend resistance high at 1.4335, would need to occur. In that event, a key further resistance target to the upside resides around the 1.4550 price region. Current downside support resides around the 1.4050 support/resistance price region.

- James Chen, CTA, CMT

* I will be giving a workshop at the Forex & Options Expo in Las Vegas, August 3rd. For more information: http://www.moneyshow.com/lvfx/WorkShopDetails.asp?wkspid=1C565A972C0E408C906EB11624490B12

* I will be key speaker at FXstreet.com’s International Traders Conference in Barcelona, Spain in October 2009 - for more information, please go to: www.traders-conference.com .

* For information on my book, Essentials of Foreign Exchange Trading (Wiley), please click here.

* Follow my intraday forex updates on Twitter: http://twitter.com/JamesChenFX

Price action on USD/JPY has bumped up against the dynamic resistance imposed by a steep downtrend line within the context of a significant parallel downtrend channel. For the current technicals on this currency pair, please click here for Friday’s (7/24/2009) Chart of the Day.