Open an Account Practice Account Account Funding Login Information
Forex Trading CFD Trading Spot Metals Trading
GTS Platforms MetaTrader 4 Automated Execution EBS Pricing Advantage
Trading Examples WebinarsEducation Center MetaTrader 4 TutorialsEconomic Calendar Glossary FAQs
Company Profile Regulatory Information
White Label Partnerships Introducing Brokers Institutional Trading Solutions Company Profile
Contact Us Account Forms Live Chat TechNotes

Chart of the Day

More Articles >

EUR/GBP Daily Chart — June 8, 2010

By James Chen , Published: 06/08/2010
(Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; chart patterns in white; 50-period simple moving average in light blue.)

6/08/2010 – EUR/GBP – Price action on EUR/GBP, a daily chart of which is shown, dropped down to key support in the important 0.8200 price region, a new 18-month low, before making a bounce as of Tuesday (6/08/2010) morning New York session. This occurs within the context of a steep and accelerated overall downtrend extending from the March highs. The steepness of this downtrend highlights the fact that the euro has been significantly more bearish against the dollar than sterling has in the past several months. While this is true, EUR/USD and GBP/USD are both currently entrenched in strong overall downtrends. Despite the noted bounce off 0.8200 support in EUR/GBP, this cross maintains a bearish tone in line with the steep prevailing downtrend. Considering this steep downtrend, upside resistance resides significantly in the 0.8400 price region, while any substantial breakdown below the noted 0.8200 support could potentially target further downside support in the key 0.8000 price region. This important level is not only a significant support/resistance and psychological level, but it also coincides with a 161.8% Fibonacci extension of the prior major downtrend run.

To download the latest version of FX AccuCharts
please click here: Download FX AccuCharts
 
James Chen, CMT
Chief Technical Strategist,
FX Solutions

*IMPORTANT NOTICE: The information contained herein is solely for informational purposes and should not be construed as trading advice. FX Solutions ("FXS") believes that the information contained herein is accurate however, FXS cannot guarantee the accuracy of said materials. Under no circumstances shall FXS have any liability to any person or entity for (a) any loss or damage in whole or in part caused by, resulting from, or relating to, any error (negligent or otherwise) or other circumstance in connection with the collection, compilation, analysis, interpretation, editing, transcription, transmission, communication, publication or delivery of such information, or (b) any direct, indirect, compensatory or incidental damages whatsoever (including without limitation, lost profits) resulting from the use of or inability to use any such information. The charts and other opinions constituting the information contained herein are, and must be construed solely as statements of opinion and not statements of fact, recommendations and/or trading advice. FXS cautions that no single source of information should be used when making trading decisions. Click here for more information.