Bearish price action on EUR/USD as of Thursday (3/18/2010) morning New York session has brought price down substantially after being rejected around the key 1.3800 resistance on Wednesday. Because price was unable to breach 1.3800 in any significant manner, EUR/USD still remains very much within the context of an overall bearish trend. Upside resistance within the context of this downtrend continues to reside around the 1.3800 area, while the key downside level to watch is 1.3400, a breakdown of which would confirm a downtrend continuation for the pair.
- James Chen, CTA, CMT
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