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Currency Majors Technical Perspective

Ian G Coleman from FXstreet.com Independent Analyst Team at 01/08/10


EURUSD Current price: 1.4312

Pushed lower yesterday and continued it’s moved down in an impulsive manner. We have now reached close to the previous low (1.4283) and our solid trend line support at 1.4280. At the time of writing the pair is trying to make a comeback. If we can manage to pull above 1.4328 then I think the pivot (1.4354) is all that we may see before the next onslaught lower. We are still in a large corrective channel that favours a break to the downside. Through 1.4280 opens the way to 1.4217 and beyond (A large ABC correction would be 1.3600- Daily)

Support levels: 1.4280 1.4257 1.4218

Resistance levels: 1.4328 1.4355 1.4386

GBPUSD Current price: 1.5956

No great shocks with the BOE yesterday and the pair has made a slow grind higher. The move up is still looking corrective at the moment and would favour a move lower. We are still in this large downward channel and the upper trend line stands at 1.5978. I would only turn truly bullish on this pair if we managed to break above 1.6060. A move below 1.5896 should signal a move down to 1.5833 and possibly 1.5785.

Support levels: 1.5924 1.5896 1.5834 (1.5785)

Resistance levels: 1.5978 1.6000 1.6060

USDJPY Current price: 93.37

Rallied aggressively higher yesterday and pushed past our target level of 93.43. We spiked through previous trend line resistance (was support / now resistance) at 93.61 and made a high at 93.76. The pair looks strongly bullish BUT we may correct slightly lower from here before the next leg higher. A break of 93.77 should take us up to 94.43. A move below 93.11 and I would only expect a maximum move to 92.80. Prime figure to watch to the downside is 92.74. If this breaks it will open up the way for lower lows.

Support levels: 93.11 92.81 92.74

Resistance levels: 93.68 93.77 94.43

USDCHF Current price: 1.0343

Pushed higher yesterday but has yet to make a higher high. Strong trend line resistance at 1.0371. The pair has lost momentum and may correct slightly lower before the next possible attack of the channel. Less than 1.0333 and we have support at 1.0318. If we break here we could see 1.0292. A break through the channel and 1.0421 is our next big target.

Support levels: 1.0333 1.0318 1.0292

Resistance levels: 1.0371 1.0420 1.0504

Have a great day

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