New York
Chart Of The Day | Forex Chart Analysis | James Chen
Join James Chen, FX Solutions\' Lead Technical Analyst, each day as he provides commentary for a given currency pair chart setup.

5/23/2008 – EUR/CHF Daily Chart


5/23/2008 – EUR/CHF Daily Chart*


(Price on 1st pane, MACD Histogram on 2nd pane; uptrend lines in green; downtrend line in red; Fibonacci retracements in grey; divergence pattern in magenta.)

5/23/2008 – EUR/CHFBearish price-oscillator divergence on the EUR/CHF daily chart, as shown, helped to presage the downturn in the pair that began early in the week. This divergence is outlined by the two short magenta lines, where price made a higher high while the MACD Histogram made a lower high.

This downturn occurred at a significant location with respect to support/resistance, as the point at which the reversal took place was at a significant dynamic resistance level in relation to both the red downtrend resistance line (marked “A”) as well as the green uptrend resistance line (marked “B”).

Currently, price has broken down below the short-term uptrend support line (marked “C”) in the past couple of days. In the event of continued momentum to the downside, the next major support resides around the long-term uptrend support/resistance line (marked “D”). This support is also in the region of a key 38.2% Fibonacci retracement 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.

SocialTwist Tell-a-Friend

Leave a Response

Trading Metro

Before diving into the legalese below, use your common sense when trading. Rely on yourself to define trade execution, don't trade with money you cannot afford to lose, and know the risks of trading. Be responsible, be honest, and use common sense.

Online trading, especially that on margin carries a high level of risk and may not be suitable for all investors. Opinions expressed at Trading Metro are those of the independent authors and do not necessarily represent the opinion of Trading Metro. Trading Metro has not verified the accuracy of any claim or statement made by any independent author. It's your responsibility to ensure the veracity of information presented.

Any solutions, opinions, news, research, analyses, prices or other information contained on this website, by Trading Metro, its employees, partners or contributors, is provided as general market commentary and tools, and does not constitute investment advice. Trading Metro will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Information on Trading Metro is NOT a recommendation or solicitation to buy or sell any securities. Your use of this and all information contained on Trading Metro is governed by the Terms and Conditions of Use. Please click the link to view those terms. Follow this link to read our Editorial Policy and our Privacy Notice.

Feedback Form