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Currency Majors Technical Perspective

Valeria Bednarik from FXstreet.com Independent Analyst Team at 01/10/10


EUR/USD Current price: 1.4415

Still inside the daily ascendant short term channel, hourly charts show pair is forming a small continuation triangle in the hourly chart, above 1.4440 resistance area, pair could extend the upside despite hourly indicators look a bit exhausted in the hourly. 20 SMA regained the bullish slope under current price supporting the bias. 4 hours charts indicators are also slightly bullish. Stocks likely to rise following DJIA 15 months high will dollar likely to remain under pressure after past Friday’s data. Gold opened the week in a strong tone, rising above the $ 1150/oz.

Support levels: 1.4380 1.4340 1.4310

Resistance levels: 1.4440 1.4485 1.4515

GBP/USD Current price: 1.6072

Accelerating higher, hourly charts show Pound above 1.6060 level, and rising, despite an opening gap around 1.6010. Pair has an immediate resistance at the 1.6110 area, ahead of the daily descendant trend line coming from 1.64, now around 1.6145. Indicators in the 4 hours charts remain strongly bullish supporting further rises, with 20 SMA well under current price. In the  hourly chart, 20 SMA acting as dynamic support, should keep the downside limited around stronf 1.6000 area.

Support levels: 1.6060 1.6000 1.5965

Resistance levels: 1.6110 1.6145 1.6185

USD/JPY Current price: 92.55

Japanese Yen could regain past month bullish strength as the recent spike in U.S. bond yields, is flagging a return to the yen to fund carry trades.  Holding above 92.20 area, pair has regained the downside, after failing to break 200 SMA in the daily chart past Friday. Hourly charts show 20 SMA above current price and turning bearish, with indicators noisy after NFP report. 4 hours charts however, support further downside strength ahead if 92.20 supports gives up.

Support levels: 92.20 91.80 91.40

Resistance levels:  92.85 93.15 93.50

USD/CHF Current price: 1.0231

Testing key support, pair remains bearish thus rally seems over extended in the hourly chart, according to indicators. As long as 1.0200 holds the downside, an upside corrective movement to the 1.0280 level seems likely, thus if 1.0200 gives up, pair likely to accelerate further down and present limited upside corrective movements. Bigger time frames also seem overextended, supporting some upside corrections ahead.

Support levels:  1.0230 1.0200 1.0165

Resistance levels: 1.0280 1.0320 1.0360

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