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Currency Majors Technical Perspective

Ian G Coleman from FXstreet.com Independent Analyst Team at 02/03/10


EURUSD Current price: 1.3966

Asian stocks are up overnight offering a bit of weakness to the US dollar. EURUSD had made an ABC sequence, pausing at 1.3977. We have the PMI and Retail Sales out today (http://www.fxstreet.com/fundamental/economic-calendar/) which should show us some direction. At the moment, this whole move higher looks corrective. Indicators are starting to turn bearish. We have the bottom of the trend line at 1.3921. A break here and we would need 1.3853 broken to continue the bearish long term view as this may just be forming main wave B in a larger correction.

Support levels: 1.3954 1.3923 1.3881

Resistance levels: 1.3978 1.3990 1.4000

GBPUSD Current price: 1.6028

GBPUSD has moved strongly higher in the last 30 minutes moving past the ABC target at 1.6027. If this is just a corrective move higher then we need to see 1.6077 hold to the upside. All indicators are bullish and we are trading above the moving averages. We have our first trend line resistance at 1.6065. In the big picture, the whole move down from the 19th could have been an ABC sequence so we would need to see price action lower soon to keep with the long term bearish view. The bottom of the trend line is at 1.5962. A break here and we open the door for lower lows (below 1.5852). We have PMI at 9.30 GMT

Support levels: 1.5991 1.5960 1.5902

Resistance levels: 1.6027 1.6066 1.6077

USDJPY Current price: 9047

The trend lines at 9095 and 9056 have been used as support and resistance this week. The lower trend line was taken out yesterday afternoon as is now acting as resistance. As we broke the channel formation we also broke the trend line on the MACD signaling the move lower. All indicators are flat now and the moving averages mixed giving no direction. An ABC sequence would take us down to 8988. A break higher through 9056 and we should see 9095 again.

Support levels: 9026 9000 8987

Resistance levels: 9056 9095 9180

USDCHF Current price: 1.0561

Still in this corrective channel we have moved slowly lower. 10548 held as support but the pair lack momentum in any direction. At the moment the view is completely mixed. A break of 10548 should take us down to 10522 where we have trend line support. A move above 10583 and 10610 would be the first target. With the BOE and ECB tomorrow combined with the NFP on Friday I would not ‘expect’ too many fireworks today……..but you never know.

Support levels: 1.0548 1.0521 1.0500

Resistance levels: 1.0584 1.0609 1.0644

Have a great day

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