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Currency Majors Technical Perspective

Ian G Coleman from FXstreet.com Independent Analyst Team at 01/26/10


EURUSD Current price: 1.4084

Stocks are down for the seventh day in a row (in Asia) over concerns that China may try to slow their economy. USD and YEN have strengthened. EURUSD has pushed out of the channel at midnight (GMT) and the pair pushed down impulsively. If we look to the daily chart we can see a doji from yesterday that signals the indecision. The first target area will be the previous resistance line (now support) and the previous low at 1.4025.

Support levels: 1.4050 1.4031 1.4000

Resistance levels: 1.4150 1.4195 1.4219

GBPUSD Current price: 1.6205

Impulsive move up in GBP yesterday, maybe in anticipation of the GDP figures today at 9.30. We have pulled lower overnight with the overall USD strength. We did reach between 38.2-50% of the whole moved down (16249) so this may be the end of the correction. Signals are turning bearish but we are still in the buy zones. If we push above 1.6250 then this from 11.00pm (GMT) may just be a small correction in a larger ABC sequence that could take us up to 16313. A move lower, after the figures, should be impulsive and target the low quickly.

Support levels: 1.6190 1.6174 1.6126

Resistance levels: 1.6250 1.6286 1.6313

USDJPY Current price: 8963

Broke through support at 89.60 and we are moving down impulsively. We have trend line support off the daily chart at 89.40. A full flag formation would take us down to 88.60 area. A full 61.8% retracement of the move up would take us to 88.22. All indicators are bearish at the moment

Support levels: 89.40 89.00 88.60

Resistance levels: 89.80 90.15 90.34

Be careful with all YEN pairs ...news breaking about Japan

USDCHF Current price: 1.0447


Look to the daily chart. We have three separate types of doji for the last three days, all inside this corrective channel. Breaking higher now. If the wave count is to be believed this should be an impulsive third wave and take us up to 1.0511 quickly. Only a break back inside the channel would suggest that the ABC correction has not finished yet.

Support levels: 1.0423 1.0396 1.0342

Resistance levels: 1.0446 1.0495 1.0722

Just as I finish the report S + P are saying something about the Japan economy. I do not have the full story yet but it is reversing the current trends as I write.

Have a great day

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