EUR/USD (daily chart) has again bumped up against important resistance around the key 1.3300 price region, a level that price has been unable to breakout above for the last 9 months. For 2 weeks since late December, price has consolidated right under this 1.3300 level, forming a flag-like pattern consolidation. This occurs within the context of both a longer-term bullish trend extending back to the July 1.2041 low, as well as a shorter-term bullish run that began three weeks ago and broke out above several key resistance levels. With price having formed the bull flag pattern under 1.3300, a breakout above this level could move towards further potential resistance to the upside around 1.3500, thereby confirming a continuation of the entrenched bullish trend. To the downside, short-term potential support resides around the 1.3170 price region, a prior support/resistance level as well as the approximate lower border of the flag pattern.
James Chen, CMT
Chief Technical Strategist
FX Solutions
Forex trading involves a substantial risk of loss and is not suitable for all investors. FX Solutions LLC (“FXSâ€) is compensated through a portion of the bid/ask spread. This information is being provided only for general market commentary (based on technical analysis) and does not constitute investment trading advice.  Certain information contained herein has been obtained from sources that FXS believes to be reliable; however, FXS cannot guarantee the accuracy of such information, assure its completeness, or warrant such information will not be changed. The information contained herein is subject to change without notice. FXS has no obligation to update any or all of such information; nor do we make any express or implied warranties or representations as to the completeness or accuracy or accept responsibility for errors. These materials are not intended as an offer or solicitation with respect to the purchase or sale of any financial instrument and should not be used as the basis for any investment decision. Past performance is not necessarily indicative of future results. No determination has been made regarding the appropriateness of any information contained herein. Due to various risks and uncertainties, actual events or results may differ materially from those reflected or contemplated herein. FXS expressly disclaims any loss or profits that may arise from any use of the information contained in or derived from this commentary. FXS and its affiliates may engage in transactions that are inconsistent with the views expressed herein. FXS does not endorse nor is it responsible for any third-party posts related to this material.
