6/30/2008 – EUR/USD 4-Hour Chart*

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

6/30/2008 – EUR/USD – After the impressive rally that occurred during the latter part of last week, price on the EUR/USD 4-hour chart, as shown, has just bumped up against and bounced down off of a significant resistance zone in the 1.5820-1.5840 region (represented on the chart by the top yellow line).

This bounce off resistance occurs within the context of a trading range consolidation that has prevailed in this pair for almost four months now. Lending strength to a possible downturn and impending bearish bias at or near this horizontal resistance are oscillators like the displayed Stochastics, which are emerging unmistakably down from extremely overbought.

In the event of continued momentum down, major support to the downside resides in the region of the last significant horizontal support level, around 1.5460 (represented on the chart by the second yellow line).

James Chen

Chief Technical Analyst, FX Solutions

To download the latest version of FX AccuCharts 7.0, please click here: Download FX AccuCharts 7.0

*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.

6/27/2008 – USD/JPY Daily Chart*

(Price on 1st pane, Slow Stochastics on 2nd pane; downtrend line in red; uptrend line in green; horizontal support/resistance line in yellow; Fibonacci retracements in white; 200-period simple moving average in light blue.)

6/27/2008 – USD/JPY – Price on the USD/JPY daily chart, as shown, has just touched a key short-term uptrend support line (represented on the chart in green). This uptrend line has provided support for the pair since mid-March.

A clean breakdown of this line would target further support at the long-term downtrend line (in red), which acted as downtrend resistance for about a year before being broken to the upside earlier this month.

If, however, USD/JPY has enough resilience to make a clear bounce up off the current uptrend support line in the next few days, price should target clear resistance in the 108.50 region, a significant previous support/resistance level.

James Chen

Chief Technical Analyst, FX Solutions

To download the latest version of FX AccuCharts 7.0, please click here: Download FX AccuCharts 7.0

*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.

6/26/2008 – GBP/USD Daily Chart*

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

6/26/2008 – GBP/USD – After the FOMC announcement yesterday and the London market open today, price made a serious breakout of the long-term downtrend resistance line as shown on the accompanying GBP/USD daily chart.

This was a clean breakout that just reached the level of the 200-period simple moving average as of this writing, breaking through an additional key resistance level (around 1.9850) in the process. The broken downtrend resistance line is now considered a major dynamic support level to the downside.

To the upside, any continued momentum from the breakout should target further major resistance in the 2.0100 region, although oscillators like the displayed Stochastics are showing well-overbought.

James Chen

Chief Technical Analyst, FX Solutions

To download the latest version of FX AccuCharts 7.0, please click here: Download FX AccuCharts 7.0

*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.

6/25/2008 – USD/CHF Daily Chart*

(Price on 1st pane, Slow Stochastics on 2nd pane; downtrend lines in red; 50-period simple moving average in light blue.)

6/25/2008 – USD/CHF – Within the context of the long-term downtrend on the USD/CHF daily chart, as shown, price has settled into a slightly downward-sloping range consolidation.

Though this parallel range is more than 300 pips wide, it is still considered a tight consolidation because it occurs on a longer-term daily chart. During consolidations that are tight, watching for breakouts is usually a more prudent direction than trading the range.

In view of this, technical traders will be watching this pair for a break on either side, up or down. But because it is a descending range that follows a recent short-term run up from the long-term lows around 0.9640, there is a slight technical bias towards an eventual breakout to the upside.

If this indeed occurs with momentum, the next resistance level to the upside resides around the 1.0600 region, and then ultimately at the long-term downtrend resistance line represented by the top red line.

James Chen

Chief Technical Analyst, FX Solutions

To download the latest version of FX AccuCharts 7.0, please click here: Download FX AccuCharts 7.0

*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.