(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.

(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.)

9/30/2008 – GBP/USD – Price action on the key GBP/USD pair (a daily chart of which is shown) has been in strong bearish mode since the beginning of the week as the dollar has strengthened across the board. This has manifested itself into what is appearing to be a continuation of the downtrend that has been in place since late-July. Momentum on this pair still appears to be unmistakably down, with little in the way of a strong bottom in sight.

Price has broken down below support barrier after support barrier, including several significant Fibonacci levels. Currently, as of Tuesday mid-morning in New York, fast-moving price-action has moved down below a key 61.8% Fibonacci level, and any continued bearish momentum could now target the major support that resides first around 1.7750, and then eventually around the 1.7450 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 lines in green; downtrend lines in red; horizontal support/resistance level in yellow.)

9/29/2008 – USD/JPY – Price action on the USD/JPY daily chart, as shown, has just reached up to a key downtrend line (represented by the short red line), and then subsequently bounced down considerably off this line, respecting its resistance once again. This last touch is at least the fourth time in the line’s existence that price has respected its boundary, and the line should continue to serve as resistance at least for the near-term.

To the downside, as of Monday morning (New York session), price is currently approaching both an uptrend support line and a significant horizontal support/resistance line that are converging around the 103.70-104.00 price region. A breakdown below this support zone should hit further support around the 102.50 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.

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

9/26/2008 – GBP/USD – Price action on the 4-Hour GBP/USD chart, as shown, is currently languishing in somewhat of a sideways consolidation, much like other major currency pairs.

As of Friday morning (New York session), price has been hugging a relatively well-defined uptrend support line (in green) after falling down off of a significant downtrend resistance line (in red). This downtrend line should continue to serve as resistance in the event of a pronounced bounce up off the current uptrend support.

In the event of a breakdown of the current consolidation, below the uptrend support line, key immediate support to the downside resides around the 1.8260-1.8270 zone.

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 lines in yellow; 50-period simple moving average in light blue.)

9/25/2008 – EUR/USD – Price action on the EUR/USD daily chart, as shown, is currently in somewhat of a consolidation mode, seemingly undecided as to the next directional push. The parallel green lines on the chart show that price has bullishly begun to form a steep uptrend channel, having just hit the top of this channel a few days ago before retreating. Any continuation of this downward pullback should find solid support at or near the bottom of this channel, currently around the 1.4400 region. Overall, however, there is somewhat of a bullish technical bias to this key pair. Even with intermediate pullbacks and consolidation, price could eventually continue its climb towards the major resistance target around the 1.4960-1.5000 region. Not only does this resistance zone represent key prior resistance where price turned abruptly in the past, but it also represents a major 50% Fibonacci retracement level (the high-to-low retracement span being measured from the high reached on 7/15/2008 to the low hit on 9/11/2008).

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; downtrend line in red; chart pattern in magenta; 50-period simple moving average in light blue.)

9/24/2008 – AUD/USD – Price action on the AUD/USD daily chart, as shown, has formed a pennant consolidation pattern that has followed immediately on the heels of a key downtrend resistance line breakout last week. The current pennant formation on the daily chart is represented on the chart by the magenta lines. In the event of a significant breakout above the upper border of this pennant, a potential upward continuation will have been signaled, and the next immediate resistance level to the upside resides around the top of the pennant. In turn, a strong break above the top of the pennant would confirm an uptrend continuation, potentially targeting the 0.8700 resistance 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 lines in green; downtrend line in red; 200-period simple moving average in light blue.)

9/23/2008 – USD/CAD – Price action on USD/CAD (a 4-Hour chart of which is shown) has been approaching a confluence of support offered by two trendlines. This support occurs within the context of a rough, upward-consolidating wedge pattern (represented on the chart by the two converging green lines).

The first support factor is provided by the bottom trendline of the wedge. The second support factor is the red downtrend resistance line which should now act as support after it was broken to the upside early last month. This coming together of two support factors currently resides approximately around the 1.0250 region.

Oscillators like the displayed Stochastics, which are well in oversold territory and pointing up, are supporting a potential bounce back up at or near support, towards the upper part of the wedge. This bounce may have already begun to occur as of Tuesday. In the event of an eventual breakdown below the current confluence of support, on the other hand, price should target key psychological support around the 1.0000 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; downtrend line in red; Fibonacci retracements in grey; 200-period simple moving average in light blue.)

9/22/2008 – USD/JPY – As shown on the accompanying USD/JPY 4-Hour chart, price action has recently formed a relatively well-defined downtrend resistance line (represented on the chart by the red line), with at least three or four touches thus far.

After the latest run-up to this line (between the recent low of 103.97 to the recent high of 108.00), price retraced to about 50% of the move (as shown on the chart by the Fibonacci retracement levels) before pulling back up a bit. In the event of a continuation of this upmove, clear resistance to the upside resides around the aforementioned downtrend resistance line, currently around the 107.75 region.

A continuation of the latest bounce down off that downtrend resistance line, on the other hand, should target strong support around the 104.00 region, which is the approximate level of the last major swing low.

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.)

9/19/2008 – GBP/USD – Price action on the long-term GBP/USD WEEKLY chart, as shown, is currently approaching a key level in its current upward correction.

This level (marked “A” on the chart) is the 1.8500 region, and it represents not only a key psychological price zone where price has turned several times in the past, but also where a major 38.2% Fibonacci retracement level resides (the high-to-low retracement span being measured from the high reached on 7/15/2008 to the low reached on 9/11/2008).

This 1.8500 level therefore represents strong current resistance to the upside, a strong breakout of which should indicate a major change in trend. The weekly Stochastics, as shown, are supporting this move towards resistance, as the oscillator is pointing unmistakably up from extremely oversold. A move back down, on the other hand, should meet significant support around the 1.8100 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; downtrend line in red; 200-period simple moving average in light blue.)

9/18/2008 – USD/CAD – USD/CAD (a daily chart of which is shown) has once again reached a critical juncture. Price has reached up to and stalled at a significant resistance point right at a key long-term downtrend line (represented on the chart by the red line). This downtrend resistance line has been touched at least five times over the last five-and-a-half years.

In the event of a pronounced bounce down off this resistance, major support resides around the 1.0400 region. Any strong breakout above this trendline with significant momentum, on the other hand, should target further resistance around the price region surrounding the 1.0900 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.

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

9/17/2008 – USD/CHF – Within the context of the up-and-down consolidation in the majors in the last few days, the USD/CHF pair (a daily chart of which is shown) has been bouncing between two significant support/resistance factors. On the upside, dynamic resistance resides around the steep uptrend line that the pair broke down below earlier this week (support becomes resistance).

On the downside, there is a rather significant horizontal support/resistance level around the 1.1050 level, where price stalled and turned up almost precisely in the last two days. This level also acted as a resistance level previously. Currently, as of this writing, price is high in the consolidation range.

Barring a fundamentally-driven breakout back above the steep uptrend line, price is technically presenting somewhat of a bearish bias, potentially targeting support at or near the abovementioned 1.1050 region. If a breakout above the trendline occurs, on the other hand, strong resistance resides around the recent high in the 1.1415 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.

9/16/2008 – EUR/GBP – Price on the key EUR/GBP cross (a daily chart of which is shown) has just made a pronounced bounce almost precisely off the significant uptrend support line that has been in place for at least a year now. This line is represented on the chart by the green line. From a technical perspective, this dip (or corrective pullback) to the uptrend line might have been expected, especially after price over-extended itself by hitting a decade-long historical high (around 0.8185) just a couple of weeks ago.

Any continued upmove off the current trendline bounce should once again target strong resistance at this historical high. Oscillators like the displayed Stochastics, which are beginning to turn up from extremely oversold, are lending some potential strength to a bullish outlook on the bounce. A near-term turn and subsequent breakdown of the trendline, on the other hand, should target immediate further support around the 0.7800 region, which is the level of the last swing low pullback to the uptrend 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. Click here for more information.