Currency Majors Technical Perspective

Ian G Coleman from FXstreet.com Independent Analyst Team at 02/09/10

 

EURUSD Current price: 1.3706


Daily chart and we have an inverted hammer for yesterday which is a possible reversal pattern. The fact that Trichet will be leaving Australia a day early has given the Euro a boost overnight. On the hourly chart we are making an ascending triangle which favours a break to the upside through 13715. A break and the first target we should look for would be 13850. This would ‘line up’ with the 200 SMA. A break below 13643 would invalidate this view. Indicators are bullish

Support levels: 1.3676 1.3643 1.3583

Resistance levels: 1.3715 1.3800 1.3850

GBPUSD Current price: 1.5627


Daily chart showing a spinning bottom candle, just above the daily trend line at 1.5522. 1 hr chart and we see a similar picture to the EURUSD but lagging behind. Indicators are turning bullish but we do not see the top of the trend line until 1.5661. A break there and 1.5790 could come into play. A break below 1.5566 and I think we will just be forming a channel and not break the previous low.

Support levels: 1.5584 1.5566 1.5533

Resistance levels: 1.5633 1.5661 1.5790

USDJPY Current price: 89.42


The last three daily candles tell it all. The USDJPY has been stuck in a range. 1 hr chart and we see everything flat. We are slightly supported by an ascending trend line at the moment (currently at 8920). We have a previous high at 8957 that need to be cleared to take us to 8978. If can manage this hurdle then it brings 9078 (daily trend line) into view. A break lower and we would need to see 8850 broken to turn the pair truly bearish

Support levels: 8920 8900 8882

Resistance levels: 8857 8978 9011

USDCHF Current price: 1.0705


Hammer top on the daily chart. 1 hr chart and we are making a descending triangle formation which favours a break lower. The bottom support line at 10695 is also the main channel line so should hold some good support. A break lower and we could see 10600 as the first target area. A move through the upper trend line at 10738 opens the door for 10800

Support levels: 1.0695 1.0646 1.0610

Resistance levels: 1.0737 1.0748 1.0800

Have a great day