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Currency Majors Technical Perspective

Valeria Bednarik from FXstreet.com Independent Analyst Team at 02/14/10


EUR/USD Current price: 1.3610

EUR/USD sentiment remains strongly bearish as ECB’s Trichet reassure this Sunday afternoon, that euro zone commitment over Greece “is enough to me”, while all EU countries must respect stability pact. Greece economic instability has been weighting on the hegemonic currency since early January, sending the cross to current 1.36 area. 

Despite testing oversold levels in the daily, 1 hour charts show pair remains bearish, capped by 20 SMA and with momentum retreating back down from the 100 line. Under 1.3575 support, expect the pair to retest the 1.3530 area, past week low. 1.3495 is next support in line, as it represents the 61.8% retracement of past 2009 bullish rally.

Support levels: 1.3575 1.3530 1.3495

Resistance levels: 1.3640 1.3685 1.3710

GBP/USD Current price: 1.5646

Pair gapped to the downside, following dollar strength and weaker stocks; ahead of holidays in half Asia, and U.S. President day, market conditions could get thinner and exacerbate rallies during the next 24 hours. Moving sideways, pair has a slightly bearish perspective for current session, as current candle opened under 20 SMA while momentum retreated from 100 line. However, pair needs to break at least under 1.5620 support to confirm a downside continuation, and retest past week lows. Bearish perspective remains intact as long as pair holds under 1.5770 resistance area.

Support levels: 1.5620 1.5585 1.5530 

Resistance levels: 1.5680 1.5720 1.5770

USD/JPY Current price: 90.01

Holding around 90.00 pair remains capped by 100 SMA in the daily chart unable to break above since past February 4th. With a slightly bearish perspective coming from hourly indicators, break under 89.80 support should send the pair to test next support level around 89.50 strong area. To the upside, only confirmations above 90.40/50 zone could deny previous perspective and support further rises today.

Support levels: 89.80 89.50 89.20

Resistance levels:  90.15 90.45 90.80

USD/CHF Current price: 1.0761

USD/CHF rally seems a bit overextended to the upside in the daily, and currently both 1 and 4 hours charts, point for some downside corrective movement ahead. Slightly bearish and testing 20 SMA still bullish in the hourly chart, bearish movement could extend to the 1.0700 area, where 20 SMA in the 4 hours charts should halt the rally; on contrary, break above 1.0785 resistance area, should trigger further upside rallies diluting corrective chances.

Support levels: 1.0730 1.0700 1.0670

Resistance levels: 1.0785 1.0820 1.0865

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