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Currency Majors Technical Perspective

Valeria Bednarik from FXstreet.com Independent Analyst Team at 02/21/10


EUR/USD Current price: 1.3624

Extending past Friday’s bullish corrective movement, pair has gapped to the upside in early interbank trading, reaching 1.3640 resistance area from where the pair seems to be retreating slightly. Hourly chart show indicators still bullish, yet approaching to overbought conditions, while 4 hours charts show bullish strength coming from technical indicators and current opening took place above 20 SMA; as long as 1.3600 acts as support, pair could extend current rally above mentioned 1.3640 area, and test next resistance zone at 1.3680. Break under 1.3600 however, will suggest more downside pressure in the pair for current session.

Support levels: 1.3600 1.3560 1.3535

Resistance levels: 1.3640 1.3680 1.3720

GBP/USD Current price: 1.5446

U.K. surprise deficit known past Thursday keeps pressuring Pound: currency remains close to the 10-month lows reached past Friday, with hourly indicators showing some signs of exhaustion to the upside, limiting rises in the pair. 20 SMA under current price turned flat, not giving cues at this point, around 1.5400. 4 hours chars show indicators pointing for some upside corrective movement, so if pair manages to accelerate trough 1.5485, correction could extend to 1.5560 zone.

Support levels: 1.5410 1.5360 1.5320

Resistance levels: 1. 5485 1.5530 1.5570

USD/JPY Current price: 91.66

Pair already closed the opening gap and according to hourly indicators, ready to regain previous bullish strength; however, still under 20 SMA in the hourly, pair needs to gain momentum above 91.80 area to extend current rally to past Friday’s high around 92.15. Above that, 92.30/40 area, daily 200 SMA should be next key level to consider.

Support levels: 91.30 91.05 90.70

Resistance levels:  91.90 92.15 92.40

USD/CHF Current price: 1.0758

Bearish corrective movement that held above 1.0730 support area seems to be complete as hourly indicators approach to oversold conditions. Pair rebound still did not close opening gap, around 1.0770 resistance area; above it, pair should regain bullish momentum and extend current rally above 1.0800 area. 4 hours charts however, had turned bearish, so if pair lose the 1.0730 support zone, downside could extend  further in the next sessions.

Support levels: 1.0730 1.0700 1.0660

Resistance levels: 1.0770 1.0800 1.0845

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