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Currency Majors Technical Perspective

Valeria Bednarik from FXstreet.com Independent Analyst Team at 01/31/10


EUR/USD Current price: 1.3867

Rally extended to a six- month low of 1.3861 past Friday, leaving hourly charts oversold as seen on current chart. 20 SMA above current price holds the bearish slope, while bigger time frames also show indicators oversold. Aside from that no signs of reversal o correction yet; pair has a first resistance around 1.3890 area, ahead of 1.3940 zone. Clear break above could signal further upside rally, still considered corrective, to the 1.3990 zone. Break above mentioned low, should send the pair to test the 1.3780 area, 50% retracement of past 2009 bullish rally.

Local share markets likely to open on a weak tone, following Wall Street losses, back suffering risk aversion pressure; gold remains close to the $1083/oz area, after testing $1074/oz support past week.  

Support levels: 1.3860 1.3830 1.3780

Resistance levels: 1.3890 1.3940 1.3990

GBP/USD Current price: 1.5966

Extending past week fall with a gap, Pound is under pressure due to speculation about next BOE’s movement this week. Comments over the weekend about need to leave QE intact and rates low for an extended period as well as their American partners send GBP/USD to test 1.5930 area at the opening. Hourly charts show downside momentum remains intact despite current corrective movement, and perspective for the pair remains bearish, as  long as under 1.6060 static area, also 20 SMA in the hourly chart

Support levels: 1.5930 1.5896 1.5855

Resistance levels:   1.5970 1.6010 1.6060

USD/JPY Current price: 90.07

Back under pressure, bearish perspective remains unchanged for the pair; risk aversion added to lack of action coming from BOJ past week, should keep the upside limited by sellers. Hourly charts show pair ready to extend the fall, with 89.70 as first key support to consider. Pair needs to regain the 90.50 area to revert current trend, not seen at this point.

Support levels: 90.00 89.70 89.30

Resistance levels:  90.50 90.85 91.20

USD/CHF Current price: 1.0608

Pair remains bullish despite overbought after past Friday non official intervention movement coming from SNB in EUR/CHF; hourly charts show pair consolidating at highs, with momentum also over extended.  Bigger time frames show the same picture, suggesting some downside correction, yet short lived, ahead of further rises. 1.0550 key support should contain the downside to keep current perspective intact

Support levels: 1.0590 1.0550 1.0520

Resistance levels: 1.0640 1.0680 1.0720

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