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Currency Majors Technical Perspective

Valeria Bednarik from FXstreet.com Independent Analyst Team at 10/23/09


EUR/USD Current price: 1.5036

Euro continues consolidating above 1.5000, after printing another intra year high during Asian session at 1.5060, first static resistance to consider from current level. Hourly indicators are slightly bearish at this point, suggesting some downside movements ahead, thus seem quite limited at this point. Bigger time frames remain clearly bullish with 20 SMA guiding the pair. Clear confirmations under 1.4960 must be seen to call for a stronger downside movement today.

Support levels: 1.5000 1.4960 1.4925

Resistance levels: 1.5060 1.5085 1.5120

GBP/USD Current price: 1.6393

Gbp fall has halted, yet pair consolidating around lows, suggest the upside will remain limited during next trading hours. Indicators had already corrected the oversold state in the hourly, while 20 SMA has turned quite bearish both in 1 and 4 hours charts, suggesting more downside to come. Under today’s low, watch the key 1.6340 area as a break could accelerate selling momentum. Only above 1.6440 pair could reverse current bearish bias.

Support levels: 1.6340 1.6300 1.6250

Resistance levels: 1.6410 1.6440 1.6485

USD/JPY Current price: 91.85

Testing the 92.00 level, pair regained the bullish bias following rising stocks and risk appetite. Technically speaking break above today’s high could accelerate rises, as 20 SMA holds the bullish slope and the dynamic support condition. Momentum shows pair has room to extend yet 4 hours indicators show some exhaustion. Corrections should not break under 91.30 area to keep the midterm bullish bias. Daily close above key 92.50 level will open doors for further rises next week.

Support levels: 91.60 91.30 91.00

Resistance levels: 92.10 92.50 92.80

USD/CHF Current price: 1.0060

Consolidating in a tight 40 pips range, hourly indicators gave no real clues for next hours, while bigger time frames indicators remain bearish, with 20 SMA above current price and with a bearish slope. Pair needs to regain the 1.0100 level to gain some upside momentum, while a continuation to parity seems likely at this point. Market players should pay attention to a probable intervention if pair breach under.

Support levels: 1.0030 0.9980 0.9950

Resistance levels: 1.0070 1.0100 1.0130

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