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Currency Majors Technical Perspective

Ian G Coleman from FXstreet.com Independent Analyst Team at 02/11/10


EURUSD Current price: 1.3759

Better than expected employment figures out of Australia gave the AUDUSD a boost, and with it, the USD devalued across the board. The market will be hoping for something positive from the EU meeting today, so all eyes will be on the EURO.

On the chart we can see a pull lower yesterday from the resistance area (13800). We have pulled up to meet that level again overnight and the last hour spiked through. This has formed a treble top at the moment. We also have the 200 SMA at this level so we should expect some resistance. A break here and it open s a way for a move up to 13900. A refusal here and we should see the trend line at 13700 as the first target. All indicators are bullish at the moment but if we move lower here it would show divergence to sell on the MACD.

Support levels: 1.3744 1.3700 1.3670

Resistance levels: 1.3800 1.3841 1.3900

GBPUSD Current price: 1.5636

Stuck inside this channel at the moment (1.5661 – 1.5560) and just moving off the top. The bottom of the channel has held five times up to know so is showing solid support. We really need to see a break of the channel to give us the next direction. A break to the upside at we open the way for a move up to 1.5780 (200 SMA). A break lower and the next daily trend line is not until 1.5200.

Support levels: 1.5618 1.5560 1.5500

Resistance levels: 1.5661 1.5727 1.5780

USDJPY Current price: 8992

Hammer on the daily chart at the 20 SMA. 1hr chart and we are being squeezed by the 200 SMA. To the downside we have previous trend line support at 8978. This is also coupled with the lower channel line. A break here ‘could’ open the way for a move down to 8750 in a large ABC sequence. If we continue to push higher in the channel then 9050 should be the next target.

Support levels: 8978 8943 8900

Resistance levels: 9000 9014 9050

USDCHF Current price: 1.0644

We have a potential treble bottom here. MACD is showing some potential for a move higher. First resistance will be 1.0660 followed by 1.0695. A break through this level and we open the door for a move down towards 10505, previous low and 261.8%. We really need a break out this channel (10695 – 10628) to show direction. Any announcement from the ECB today could send the pairs quickly so be alert is a must today.

Support levels: 1.0628 1.0591 1.0505

Resistance levels: 1.0660 1.0695 1.0722

Have a great day

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