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Currency Majors Technical Perspective

Ian G Coleman from FXstreet.com Independent Analyst Team at 02/22/10


EURUSD Current price: 1.3639

Good morning. Stocks have rallied overnight in Asia. On the weekly chart we have a huge doji for last week (that follows a doji from the previous week). Is this suggesting a change of trend? 1 hr chart and we can see that the pair refused to clear the base of the channel on Friday. We are now at a key level, the 200 SMA and near 61.8% (1.3659). Oscillators are starting to turn over so we may turn lower from this level. However, a push through 13659 opens the door for a move up to 13721 (top of the trend line)

Support levels: 1.3574 1.3500 1.3462

Resistance levels: 1.3652 1.3700 1.3720

GBPUSD Current price: 1.5474

Daily chart and the pair has paused at the level for an ABC sequence and made a hammer bottom on Friday. 1 hr chart may tell another story still giving the pair a bearish bias. Just refusing the 15500 handle at the moment and oscillators are starting to turn negative. If we break lower from here it would open the way for a move down to 1.5200-1.5145 in wave 5. A move above 15557 would negate this view and open the way for a move to higher highs

Support levels: 1.5443 1.5358 1.5300

Resistance levels: 1. 5500 1.5556 1.5636

USDJPY Current price: 9164

Weekly chart and we are trying to break out of a large descending wedge formation (which would be strongly bullish). 1 hr chart and we can see the pair is relatively flat. We are in a downward channel but the move is looking corrective. If we can move lower than 9149 it should turn the par negative and target 9056. A move above the high open the way for a possible move to 9290

Support levels: 9168 9149 9139

Resistance levels: 99200 9210 9238

USDCHF Current price: 1.0748

We hit the 161.8% mark on Thursday last week (daily chart) and have pulled back. 23.6% pulled back would be 10720, 38.2% would be 1.0606. We can see on the 1 hr chart that the move lower is impulsive and we are pausing at the 200 SMA. A break through here and I would target our key level and look for possible reversal signals. (38.2% lines up with the previous low). A move higher from here and 1.0830 should be the target.

Support levels: 1.0742 1.0720 1.0700

Resistance levels: 1.0765 1.0794 1.0830

Have a great day

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