(Price on 1st pane, Slow Stochastics on 2nd pane; uptrend lines in green; downtrend lines in red; horizontal support/resistance level in yellow; 50-period simple moving average in light blue.)

10/06/2008 – GBP/USD – The continued plummet on the GBP/USD daily chart, as shown, has just made a new two and a half year low on this key pair. In the process, price has broken one major support level after another, including an important recent support level around the 1.7450 region. At this point, there appears to be very little in the way of a definitive bottom in sight.

Although oscillators like the displayed Stochastics are heavily oversold, in a trending situation like what we are seeing now this oversold indication could be in effect for quite some time while price potentially continues its sharp plunge. Even with the inevitable minor retracements and consolidations, in the event of a downward continuation two historical support/resistance levels reside relatively nearby to the downside. The closest is in the 1.7230-1.7250 zone. Below that is the 1.7050 support region, which was last hit in late 2005.

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. Click here for more information.

(Price on 1st pane, Slow Stochastics on 2nd pane; uptrend line in green; downtrend line in red; horizontal support/resistance levels in yellow; 50-period simple moving average in light blue.)

10/03/2008 – USD/CHF – Price action on the USD/CHF daily chart, as shown, has just hit resistance at the level of the last major swing high, before retreating back down. This significant resistance level has been established at around the 1.1415 region.

Oscillators like the displayed Stochastics, which are beginning to point down from oversold, are hinting at a waning of upward momentum after the latest 700+ pip run. A continuation of this downward correction could target immediate key support around the 1.1100 region.

Any subsequent breakout above the aforementioned 1.1415 level, on the other hand, could target clear further resistance around the strong 1.1600 support/resistance area.

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. Click here for more information.

(Price on 1st pane, Slow Stochastics on 2nd pane; uptrend lines in green; horizontal support/resistance levels in yellow; 50-period simple moving average in light blue.)

10/02/2008 – EUR/USD – Extremely bearish price action on the EUR/USD daily chart, as shown, has plunged a total of more than 1000 pips since the latest bear run began on September 23. The current drop has essentially been unidirectional, with little in the way of retracement or consolidation. This drastic plummet is reminiscent of the large drops that began in late July and late August.

As of Thursday morning (New York session), price has broken down below the last support level at 1.3880, which suggests that the overall downtrend of the last three months could still be in full force. Continued general bearish price action, even if minor retracements and/or consolidation enter into the picture, could target further key support around the 1.3550 region.

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. Click here for more information.

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

10/01/2008 – NZD/USD – Price action on the NZD/USD daily chart, as shown, has bounced up off of a significant downtrend line (marked “A”) in what appears to be a pullback move after price broke out above the line on 9/19/2008 and subsequently reached up to a key 38.2% Fibonacci retracement level. This breakout-pullback formation could be hinting at a possible continuation to the upside in the direction of the original break.

To confirm such a move would necessitate a breakout above the swing high that was reached after breakout, around the 0.6950 level. This price level also serves as the next key resistance to the upside if price carries further bullish momentum going forward. On the downside, the aforementioned downtrend line should continue to serve as support where it originally acted as resistance before breakout. Further strong support resides around the key 0.6440 historical 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. Click here for more information.