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Currency Majors Technical Perspective

Ian G Coleman from FXstreet.com Independent Analyst Team at 01/12/10


EURUSD Current price: 1.4500

The USD has risen against virtually all currencies overnight as the outlook for the global recovery is slowing. EURUSD pulled back to 1.4454 before posting a doji. For the past three hours we have had a positive move and a currently sitting on the previous resistance line at 1.4504. The move down reached the 38.2% retracement mark which is popular for the 4th waves in the Elliott wave theory. It then favours a move to the upside with the next target area around 14650. A move back below 1.4454 would negate the outlook and open the way for a move to 1.4390.

Support levels: 1.4454 1.4390 1.4300

Resistance levels: 1.4506 1.4556 1.4640

GBPUSD Current price: 1.6120

We reached 1.6194 yesterday and formed a rising wedge formation. This pattern favours a break to the downside. We had stopped short of the previous high at 1.6243. We have since moved lower reaching 1.6063 and are now heading higher with the USD weakness that is emerging. We would need to break 1.6200 to turn bullish on the pair again. We could then target 1.6260 area. A move back lower and through 1.6063 would look to 1.5981 as the next stop. Wedge formation targets are the start of the wedge (1.5958)

Support levels: 1.6063 1.5981 1.5957

Resistance levels: 1.6145 1.6195 1.6243

USDJPY Current price: 92.13

USDJPY pulled back higher of support that we noted yesterday and eventually made the break lower. Since the beginning of year we have been stuck trading both sides of 92.50. We have been making higher highs and higher lows and so have a very slight bias to the upside. We have formed a tempary base at 91.80 with a double bottom. A move up from here and 92.76 is the next resistance.

Support levels: 92.15 91.80 91.53

Resistance levels: 92.44 92.75 93.77

USDCHF Current price:  1.0176

I have only had to alter the current price by 1 pip since yesterday morning showing that the pair is stuck in a range. The Swiss National Bank voiced its concern about the CHF growing in strength against the Euro yesterday which gave a slight up tic to this pair at yesterday European open. The pair is sitting on the previous support line now. At the moment we cannot tell if this is another pause before the next leg lower or if we are forming a base. After a strong move lower we have to favour the downside.

Support levels: 1.0174 1.0134 1.0070

Resistance levels: 1.0195 1.0231 1.0262

Have a great day

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