Price action on the majors as of Thursday (4/16/2009) morning, as shown on the accompanying EUR/USD daily chart, continues to consolidate in a relatively tight range. On EUR/USD, this consolidation is taking place just below a long-term downtrend resistance line extending from the second test of 1.6 back in July. The lower border of the consolidation appears to be around the 1.3100 support region. Any significant breakdown below 1.3100 should quickly meet further support around 1.3000. And any breakdown below this latter level would be a substantially bearish indication that could target March lows. To the upside, the noted long-term downtrend resistance line should continue to provide strong dynamic resistance for the pair.
UPDATE: As of Friday (4/17/2009) afternoon, price action has descended all the way down to approach the 1.3000 support level mentioned above. Price is continuing to experience significant bearishness. Any true breakdown below 1.3000 should signal continued substantial bearishness in the pair going forward.
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