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Currency Majors Technical Perspective

Ian G Coleman from FXstreet.com Independent Analyst Team at 01/14/10


EURUSD Current price: 1.4539

Australia beat its job estimates overnight and this sent Asian stocks and the Aussie dollar higher overnight. These, in turn, made the USD slip slightly and EURUSD moved up to a high of 1.4457. We have trend line resistance at 1.4573 that held yesterday and the move up does look corrective at the moment. As long as we can hold that high I think we may favour the downside. A move below 1.4497 would be the first indication. I would then look to 1.4407 and 1.4300 as targets. To the upside 1.4650 is the zone to look for. We have the ECB rate decision at 12.45 (GMT)

Support levels: 1.4496 1.4455 1.4407 1.4300

Resistance levels: 1.4573 1.4583 1.4642

GBPUSD Current price: 1.6205

We noted yesterday on the blog that 1.6304 was the top of a large ABC correction. We pushed to that level and held well overnight. We are still in a large upward channel so this could just be another correction before the next leg higher. We have a previous high at 1.6243 which coincides with the trend line support. We would need to see a break here to turn truly bearish. A break of 1.6304 would target 1.6412, trend line support

Support levels: 1.6264 1.6241 1.6136

Resistance levels: 1.6304 1.6348 1.6412

USDJPY Current price: 9163

Moving higher and holding the ascending trend line well for support. Looking overbought now on the RSI and the pair is moving lower in this candle. We now have trend line support at 9143 and a previous low at 91.35 which could hold some support. To the upside I would watch 92.14 as the resistance area. This move sideways up may be an ABC correction before the next leg lower.

Support levels: 9145 9136 9073

Resistance levels: 91.90 9215 9261

USDCHF Current price: 1.0175

I wish we could show you a clearer picture on this pair but we have been stuck in range bound trading for three days now (1.0210 – 1.0138). Is this a flag formation before the next leg lower (full flag would take us to 9964) or are we forming base around the 61.8% level of the last move higher (9916 -1.0510)? All indicators are flat so we will have to wait for a break out.

Support levels: 1.0138 1.0061 9964

Resistance levels: 1.0210 1.0261 1.0291

Have a great day

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