Price action on EUR/USD, a daily chart of which is shown, has finally made a tentative breakdown below the key uptrend support line extending from the March lows. While this downside breach is significant and raises important questions as to the future direction of this pair, the prevailing uptrend is still technically considered to be intact. Today’s breach represents a weakening of conviction on the part of the EUR/USD bulls (dollar bears), and suggests indecision in the market and a potential continued consolidation. For more technical analysis on this currency pair, please click here for Tuesday’s (11/03/2009) Chart of the Day.
- James Chen, CTA, CMT
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Respected James,
Thanks for updates.
Adnan Butt
Thanks, Adnan!!!
James Chen
Wondering if the breach is an opportunity to sell.
Hi Surya,
That particular breach did not pan-out with any follow-through. Thanks, Surya!
James Chen