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Currency Majors Technical Perspective

Valeria Bednarik from FXstreet.com Independent Analyst Team at 01/24/10


EUR/USD Current price: 1.4155

Slightly bullish at the opening, pair has gapped to the upside, starting the Asian session above hourly 20 SMA. After past Friday’s fall in Wall Street with DJIA -2.13% and S&P down 2.20%, local markets had a quite negative cue from there. Technically, pair is moving inside a small ascendant channel, with flat indicators in current chart, yet supporting some bullish bias in bigger time frames. 1.4180, past Friday’s high is first resistance level to care of ahead of Japan opening, while 1.4120 had turned into a key support.

Support levels: 1.4120 1.4080 1.4030

Resistance levels:  1.4180 1.4225 1.4270

GBP/USD Current price: 1.6114

Hourly charts show pair remains bearish as momentum suggests further falls while 20 SMA above current price turned to the downside. Consolidating in a 1.6060/1.6150 range, 4 hours charts show a continuation triangle, also supporting further downside if 1.6100 gives up. Recovery above mentioned range roof will deny a fall and probably support a retest of 1.6200/1.6250 strong area.

Support levels: 1.6100 1.6060 1.6025

Resistance levels:  1.6150 1.6200 1.6250

USD/JPY Current price: 89.93

Pair remains bearish after losing key 91.40 area, 38.2% retracement of last daily upleg. Risk aversion tends to favor yen over dollar, and technically pair has room to continue: momentum remains bearish while 20 SMA despite flat in the hourly, is capping the upside around 90.00. Main support lies at the very close 89.80 area, from where the pair has rebounded a couple of times these last days; acceleration trough that level, with suggest further falls to come.

Support levels: 89.80 89.50 89.20

Resistance levels:  90.40 90.70 91.20

USD/CHF Current price: 1.0403

Holding around 1.0400, pair has no clear bias coming from hourly charts, as indicators remain too flat, including 20 SMA, and with price hovering around it. Bigger time frames however, support further falls ahead, after losing 1.0420 and with pair gapping to the upside. Only a clear recovery above 1.0440 could deny the bias.

Support levels: 1.0370 1.0340 1.0300

Resistance levels:  1.0440 1.0490 1.0530

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