FX Path

EUR/USD - Bearishness Continues Off Wedge Breakdown

James Chen — Fri, 19 Mar 2010 14:01:33 +0000

Continued bearish price action on EUR/USD, a daily chart of which is shown, has broken down cleanly below the rising wedge pattern (a bearish formation) as noted yesterday. This breakdown follows on the heels of price being rejected by key resistance in the 1.3800 price region, and indicates that the overall downtrend in the pair is still firmly intact. The current bearishness off the wedge could target further downside support in the key 1.3400 price region, a breakdown of which would confirm a downtrend continuation.

- James Chen, CTA, CMT

* For information on my DVD set, High-Probability Trend Following in the Forex Market, please click here.
* For information on my book, Essentials of Foreign Exchange Trading (Wiley), please click here.

EUR/USD - Rising Wedge Bearish Pattern within Downtrend

James Chen — Thu, 18 Mar 2010 15:36:45 +0000

Price action on EUR/USD, a daily chart of which is shown, has formed a rising wedge pattern within the context of an overall downtrend extending from the early December high. This rising wedge occurs after price was once again rejected by 1.3800 resistance, and is a potentially bearish formation that is contingent upon a significant break to the downside. For more technical analysis on this currency pair, please click here for Thursday’s (3/18/2010) Chart of the Day.

- James Chen, CTA, CMT

EUR/USD - Bearish After Rejection by 1.3800 Resistance

James Chen — Thu, 18 Mar 2010 14:30:04 +0000

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

AUD/USD - Continues Bullish Trend Run

James Chen — Wed, 17 Mar 2010 17:17:54 +0000

Bullish price action on AUD/USD, a daily chart of which is shown, continues to follow a well-defined uptrend support line extending from the early February low. In the process, price has just reached a new 8-week high. This strong medium-term uptrend places the key 0.9325 area resistance in clear and immediate focus. For more technical analysis on this currency pair, please click here for Wednesday’s (3/17/2010) Chart of the Day.

- James Chen, CTA, CMT

USD/CAD - Continued Stretch Down Towards Parity

James Chen — Tue, 16 Mar 2010 19:24:09 +0000

USD/CAD as of Tuesday (3/16/2010) afternoon New York session continues its bearish stretch towards its downside parity (1.0000) target, having just established a new 19-month low in the process. Parity has not been reached since July 2008. Currently, after having broken below key support around 1.0200, this broken support level should now serve as tentative resistance within the context of the continuing downtrend in the pair.

- James Chen, CTA, CMT

Gold - Bullish Bounce off Long-Term Trendline

James Chen — Tue, 16 Mar 2010 15:46:56 +0000

Price action on spot gold, a daily chart of which is shown, has made a swift and pronounced bounce off a long-term uptrend support line. This long-term trendline was falsely breached in early February, but has subsequently been respected since then. Most recently, price action descended back down to the trendline last week before making the pronounced bounce this week. On Tuesday (3/16/2010) in particular, price action on gold has made a strong bullish move, closely approaching resistance in the 1130 price region. For more technical analysis on this currency pair, please click here for Tuesday’s (3/16/2010) Chart of the Day.

- James Chen, CTA, CMT

GBP/USD - Bearish Turn Within Downtrend

James Chen — Mon, 15 Mar 2010 15:47:09 +0000

Bearish price action on GBP/USD, a daily chart of which is shown, as of Monday (3/15/2010) morning New York session, has erased much of the gains that the pair made late last week. On Friday after having reached 1.5200 resistance, which represented the upper border of an inverted pennant formation that was broken to the downside earlier in the week, price was rejected at that level in the beginning of this trading week, and now potentially appears poised to continue its bearish momentum. For more technical analysis on this currency pair, please click here for Monday’s (3/15/2010) Chart of the Day.

- James Chen, CTA, CMT

EUR/USD - Pulled Back from 1.3800

James Chen — Mon, 15 Mar 2010 14:02:16 +0000

Price action on EUR/USD as of Monday morning (3/15/2010) New York session has pulled back substantially after reaching a high late last week approaching key resistance in the 1.3800 price region. 1.3800 continues to provide strong resistance for the pair. Any subsequent breakout back above that level would place the current overall downtrend at risk of trend change. For now, however, the current pullback keeps the downtrend in place. The downside level to watch continues to be the 1.3400 price region, a breakdown of which should confirm a downtrend continuation.

- James Chen, CTA, CMT

Special Webinar Next Week: How To Trade Forex

James Chen — Fri, 12 Mar 2010 19:10:05 +0000

I will be participating in a special free FXstreet.com webinar next week entitled: “How To Trade Forex - Trading Gurus Reveal Their Secrets”. This two-part webinar will be held on Tuesday, March 16 and Wednesday, March 17. On both days, featured webinar presentations will begin at 15:00 GMT (11:00 AM U.S. Eastern Time). Besides myself, featured speakers will include: Markus Heitkoetter, Rob Booker, Andrei Pehar, Valeria Bednarik, and Kim Cramer Larson. For more information and to register for these sessions, please click on the following links:

Part 1: http://www.fxstreet.com/live/sessions/session.aspx?id=c7c5e40c-07b0-4cee-9f78-e313ef8f9e7d
Part 2: http://www.fxstreet.com/live/sessions/session.aspx?id=61a8b188-4411-47ad-b8f5-417c03406173

Hope to see everyone there!

- James Chen, CTA, CMT

USD/CAD - Breaks Down 1.0200; Potentially Targeting Parity

James Chen — Fri, 12 Mar 2010 17:46:03 +0000

Bearish price action on USD/CAD, a daily chart of which is shown, has finally made a tentative breakdown below the key 1.0200 support level after respecting this level several times this week. Friday’s (3/12/2010) breakdown of 1.0200 establishes a new 19-month low for this pair. The current bearishness puts USD/CAD on a potential path towards parity (1.0000), a level not reached since July 2008. For more technical analysis on this currency pair, please click here for Friday’s (3/12/2010) Chart of the Day.

- James Chen, CTA, CMT