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Currency Majors Technical Perspective

Valeria Bednarik from FXstreet.com Independent Analyst Team at 10/12/09


EUR/USD Current price: 1.4763

Not much changed since last update, holidays keep pair range bound between 1.4670/ 1.4770 area, having spike after U.S. futures barely move above previous yearly high. Hourly charts show pair ready for a downside corrective movement now, as both indicators seem to have turned lower. 20 SMA turned into dynamic support now, around 1.4710 area, while movements above current high could trigger some upside momentum in the pair.

Support levels: 1.4730 1.4710 1.4670

Resistance levels: 1.4770 1.4795 1.4820

GBP/USD Current price: 1.5823

Pound weakness sent pair to test 1.5730 area early Europe, reaching extreme conditions in the hourly and triggering current upside corrective movement. Having reached 20 SMA with a strong bullish slope, now dynamic resistance, and indicators show corrective movement is complete, further downside pressure seems likely, as bigger time frames remain strongly bearish.  Daily close under 1.5760/70 area, will confirm longer term falls.

Support levels: 1.5800 1.5760 1.5720

Resistance levels: 1.5830 1.5870 1.5920

USD/JPY Current price: 89.93

Pair failure to break above 90.35/45 strong resistance area, and quickly come back to 90.00, completing a pullback to the daily descendant trend line pair attempt to break earlier today. Pair needs to close daily candle above 90.10 to confirm such break and had chances to extend the upside. With hourly indicators turning lower, does not seems likely for next sessions.  Clearly above 90.70 area, not seen also today, will confirm some upside continuation.

Support levels:  89.80 89.60 89.20

Resistance levels: 90.10 90.40 90.80

USD/CHF Current price: 1.0277

Pair holds a general bearish bias, yet hourly charts should we could have found a floor for today around 1.0260 area. Clearly under that level, could trigger some downside momentum in the pair, as bigger time frames support the bias after pair clearly breaks 20 SMA. Only above 1.0320, current perspective is deny for next sessions.

Support levels: 1.0270 1.0250 1.0210

Resistance levels: 1.0300 1.0320 1.0360

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