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Currency Majors Technical Perspective

Ian G Coleman from FXstreet.com Independent Analyst Team at 02/01/10


EURUSD Current price: 13883

Asian stocks are lower overnight. EURUSD little changed from the close on Friday. Refused to push lower than 1.3850, forming two doji’s near the base. 13890 will be the first resistance. Still trading in this large descending channel, this move up looks like a correction before the next leg lower. A move above 13930 then a break of the trend line (currently at 13971) would change that view. If we look to the daily and weekly bars they are both strongly bearish

Support levels: 1.3862 13850 13836

Resistance levels: 1.3887 13899 13932

GBPUSD Current price: 1.5950

The pair broke out of the correction channel on Friday and headed lower impulsively. At the moment the slight move up looks corrective and I think should be capped pretty soon. Apart from the RSI being oversold there is nothing to suggest a move higher yet. The first point to watch on the downside is 15895. This would form a flag formation (or an ABC). A push through here and I would look to 15841. This is 161.8% of the first wave (large) and also 261.8% of the smaller wave that started last Thursday. A break of 16010 would negate that view

Support levels: 1.5936 15919 15895 (15841)

Resistance levels: 1.5963 15981 16010

USDJPY Current price: 9022

The pair broke the neckline of the Head and Shoulders formation on Friday but only to hit the descending trend line and move lower. At the moment we are in an upward channel (lower trend line at 9008) and 9000 has held up to now. We really need to see a break back above 9057 (neckline) to continue the bullish bias and take us up to 9180. A break below 9000 and strong support at 8980 is next.

Support levels: 9006 (0) 8980 8959

Resistance levels: 9026 9033 9057

USDCHF Current price: 1.0603

Strong daily and weekly candles give this pair a bullish bias this week. Just moving lower off the main trend line at the moment. I would expect this to be just a correction before the next move higher. Bottom trend line support is at 10514 at the moment. A clear push through 10624 opens the way for the wider upper trend line resistance at 1.0700 which also happens to be the target for a large ABC sequence.

Support levels: 10598 10577 10508

Resistance levels: 1.0625 10644 10700

Have a great day

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