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Currency Majors Technical Perspective

Valeria Bednarik from FXstreet.com Independent Analyst Team at 02/01/10


EUR/USD Current price: 1.3927

Pair corrective movements triggered by a return in risk appetite, remains capped by the 1.3930 area, 23.8% retracement of the last daily fall. Euro rises likely to remain limited by economic issues in Greece, Spain and Portugal, despite good chances of a rise in local share markets after strong Wall Street gains. Hourly charts show indicators flat, while price remains above 20 SMA, while 4 hours charts show a slightly bullish bias with price capped by 20 SMA strongly bearish around mentioned 1.3930 area.

Support levels: 1.3880 1.3850 1.3830

Resistance levels: 1.3930 1.3990 1.4015

GBP/USD Current price: 1.5947

Pound recovery also halted mid American session, with the pair consolidating in a tight range just under 1.5970 resistance area. Hourly charts show the pair has lost upside momentum, while bigger time frames indicators remain slightly bullish; pair needs to break and accelerate above mentioned 1.5970 resistance to extend the rally, while under 1.5900, chances turn to the downside and a retest of past Monday’s low around 1.5850 seems likely.

Support levels: 1.5900 1.5850 1.5810

Resistance levels: 1.5970 1.6010 1.6060

USD/JPY Current price: 90.77

Strong gains in American stocks send the pair above 90.40/50 resistance area, reaching past week high around 90.93, where the pair could be forming a double roof in the hour, turning into first resistance for next session. However, having started the day back above daily 100 SMA now around 90.25 and first strong support to consider, bias has turned slightly bullish for the pair. We need a confirmation and break above mentioned highs, to see the rally continue. Hourly indicators are no giving clear signals at this point, with CCI rebounding above 0.00 line and momentum flat above 100.

Support levels: 90.20 89.70 89.30

Resistance levels:  90.95 91.20 91.55

USD/CHF Current price: 1.0567

Unchanged since last update, bearish corrective movement remained capped by 1.0550 strong support zone. Break under that level should accelerate the fall thus not seen for current session; hourly momentum has lost strength and is turning back to the upside, with no clear signs, while 4 hours charts remain bearish; only a confirmation under mentioned level, could trigger further falls.

Support levels: 1.0550 1.0520 1.0470

Resistance levels:  1.0615 1.0640 1.0680

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