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Currency Majors Technical Perspective

Valeria Bednarik from FXstreet.com Independent Analyst Team at 02/19/10


EUR/USD Current price: 1.3487

Dollar soared to a 9 month high against Euro early Asia, after the surprise movement form FED in the discount rate, raised to 0.75% from 0.50% previously; technically, pair is breaking under key 1.3480/90 area, 61.8% retracement in the daily chart of 2009 bullish rally, signaling this wat further falls to come ahead. Indicators remain bearish with no signs of exhaustion or oversold, suggesting under current 1.3455 low, pair could extend the rally close to the 1.3410 area, next support in line.

Support levels: 1.3455 1.3410 1.3360

Resistance levels: 1.3500 1.3535 1.3580

GBP/USD Current price: 1.5465

Dollar acceleration across the board, send Pound to levels not seen since past April 2009, with no signs of exhaustion yet; hourly charts chow strong bearish momentum in the pair as well as 4 hours ones. Rally is expected to extend due to sentiment more than technical readings, with key support to consider at the 1.5360 area: if reached without corrective movements in the middle could well act as a halt and rebound zone, yet consider any upside corrective movement short lived and limited.

Support levels: 1.5410 1.5360 1.5320

Resistance levels: 1. 5490 1.5530 1.5570

USD/JPY Current price: 92.02

Extending the upside, further rally will be confirmed once the pair breaches above the 92.30 area, 200 SMA in the daily chart. A 4 hours candle opening above that level or an acceleration trough it, will signal further rises in the pair, confirming a probable midterm continuation. Despite a bit overextended, both 1 and 4 hours indicators show a strong upside momentum, suggesting no time for a downside correction yet.

Support levels: 91.60 91.20 90.80

Resistance levels:  91.30 91.60 92.00

USD/CHF Current price: 1.0878

Having raised to a multi months high of 1.0890 pair is now consolidating under that zone, yet still bullish as sentiment among investors continues to favor greenback. Hourly indicators remain bullish, as well as 4 hours ones, suggesting further upside to come above mentioned level. Pullbacks should remain capped above 1.0800 to keep current trend alive.

Support levels: 1.0870 1.0830 1.0800

Resistance levels:  1.0890 1.0920 1.0955

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