Chart Of The Day: EUR/USD

7/03/2008 - EUR/USD - Price action on the EUR/USD daily chart, as shown, took a major turn down today as a result of the Non-Farm Payrolls report in the morning. This downturn occurs at a significant technical resistance level around 1.5900, which is represented on the chart by the horizontal support/resistance line marked “A”. This line resides just around 100 pips below the all-time high in the pair. Price has been technically overbought for this whole week (as shown by oscillators like the displayed Stochastics) so the current turn down at resistance is a long-awaited, welcomed event for technical traders and analysts. In the event of a continuation of this down move, the first support to the downside resides around the 1.5650 region, and then further down at the intermediate uptrend line (in green).

James Chen
Chief Technical Analyst

FX Solutions

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(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; uptrend lines in green; downtrend lines in red; horizontal support/resistance lines in yellow; 200-period simple moving average in light blue.)