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Currency Majors Technical Perspective

Ian G Coleman from FXstreet.com Independent Analyst Team at 02/18/10


EURUSD Current price: 1.3582

The Greece issue is not dead and buried as it would have seemed on Tuesday. Angela Merkel said yesterday that ‘not a single euro’ should go to Greece. We also have the issue that the US may start to move closer to pulling economic stimulus. We have moved down impulsively which can be looked as a wave three. If that is the case then the next pause should be at 13500 (big figure and trend line at 13483) before the next move down to 13340. Any move higher should be capped by the 200 SMA at 13683.

Support levels: 1.3558 1.3531 1.3500

Resistance levels: 1.3609 1.3621 1.3683

GBPUSD Current price: 1.5668

We have met the bottom of the corrective channel. A break down to the 15 minute charts and we can see this as a five wave sequence. We could correct higher from here to 15700-32 area before the next leg lower. I think it is only a matter of time before the trend line breaks to take us down to 15532. Only a break through 15817 would negate that view

Support levels: 1.5647 1.5641 1.5532

Resistance levels: 1. 5694 1.5729 1.5750

USDJPY Current price: 9154

Unanimous vote last night to keep the interest rate unchanged. I think we need to look at the daily chart to try to get a clearer long term picture. The pair had pulled back to around 61.8% of the upward move. We eventually broke yesterday and rallied higher. We have the 200 SMA to contend with which could be a formidable challenge (9154) as this will turn some trader’s long term bullish. 1 HR we can see that we have had a gradual pullback overnight but it does corrective. I would look to 9052 as a possible turning point.

Support levels: 9080 9052 9032

Resistance levels: 9098 9106 9138

USDCHF Current price: 1.0795

The pair moved higher impulsively and has stopped short of the previous high at 10830. In my opinion, any move lower would be an opportunity to get long. A break of the high should first target 1.0879 then possibly 10960. Only a move lower through the base of the channel would negate my view.

Support levels: 1.0768 1.0719 1.0656

Resistance levels: 1.0812 1.0829 1.0879

Have a great day

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