Tuesday January 13, 2009 - 17:08:57 GMT
Share This Story
FX Solutions - www.fxsol.com
Chart of the Day - 1/13/2009 - EUR/GBP
(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; uptrend line in green; horizontal support/resistance lines in yellow; chart patterns in magenta; Fibonacci retracements in grey; 50-period simple moving average in light blue.)
1/13/2009 â€“ EUR/GBP â€“ Price action on the key EUR/GBP cross (a daily chart of which is shown) has just bounced up off a significant uptrend support line after having dropped dramatically (almost 1000 pips) since the very beginning of the year. This uptrend line has been in place at least since late October of 2008. The current bounce off this trendline coincides with a key 61.8% Fibonacci retracement level (the low-to-high retracement span being measured from the swing low to the same trendline on 11/28/2008 all the way up to the recent long-term high reached on 12/30/2008). Going forward, the uptrend line should continue to serve as strong dynamic support for the pair. Adding strength to this bounce are oscillators like the displayed Stochastics, which are pointing up from extremely oversold. A continuation of the current bullish bounce off trendline support should meet initial resistance in the 0.9300 region. In the event of any subsequent news-driven breakdown of this support later in the week, if it also breaks below the above-mentioned 61.8% level (around the 0.8850 region), price could target further support in the 0.8650 region.
Chief Technical Strategist
IMPORTANT NOTICE: These comments are for information purposes only. The information contained on this document does not constitute a solicitation to buy or sell by FX Solutions, LLC., and/or its affiliates, and is not to be available to individuals in a jurisdiction where such availability would be contrary to local regulation or law. Opinions, market data, and recommendations are subject to change at any time. Forex trading involves substantial risk of loss and is not suitable for all investors.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."