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Currency Majors Technical Perspective

Valeria Bednarik from FXstreet.com Independent Analyst Team at 10/21/09


EUR/USD Current price: 1.4958

Fresh year highs for Euro yesterday barely shy of 1.5000, Euro opened Europe well bid and pointing higher. Gold and stocks continue rising, supporting more risk appetite and dollar falls for next hours. Hourly indicators show 20 SMA broken in current candle opening far under current price zone, now turned into dynamic support. Indicators remain to the upside, yet with no enough momentum yet. Bigger time frames indicators are mostly flat, as pair is ranging since start of the week. Breaks above 1.5020, or under 1.4825, not seen at this point, could define the day.

Support levels: 1.4930 1.4900 1.4865

Resistance levels: 1.4970 1.5020 1.5055

GBP/USD Current price: 1.6510

Pound continues recovering ground, supported by BOE’s Governor King indicating that rates will rise at some point. With both 1 and 4 hours charts pointing for further gains, pair needs to clearly break above 1.6520 strong static resistance level to extend current rally. Indicators support the bias, thus some retracement from current high could be seen before next up leg. 1.6440 zone has turned into key level to watch to the downside.

Support levels: 1.6470 1.6440 1.6390

Resistance levels: 1.6520 1.6555 1.6600

USD/JPY Current price: 90.65

Pair still consolidates between 90.00/91.00, with hourly charts slightly bearish at this point  in the hourly chart. Break under 90.40 zone could send the pair to test base of mentioned range, and despite break under 90.00 seems not likely, if accomplished pair could gain downside momentum.

Support levels:  90.40 90.00 89.70

Resistance levels: 91.10 91.35 91.80

USD/CHF Current price: 1.0095

Sentiment in the pair remains strongly bearish despite chances of further intervention from banks at current levels. EUR/CHF hovering around 1.5100 is also an alarm sign of such movements. Despite indicators point for further downside movements, break under parity could trigger a strong policy intervention, so be aware.

Support levels: 1.0075 1.0020 0.9980

Resistance levels: 1.0110 1.0130 1.0175

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