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Currency Majors Technical Perspective

Valeria Bednarik from FXstreet.com Independent Analyst Team at 10/27/09


EUR/USD Current price: 1.4849

Despite technically oversold, hourly charts for the pair show a continuation figure, with 1.4840 as key support level to watch, also the 38.2% retracement of the daily rally 1.4480/1.5063. 20 SMA has turned strongly bearish, thus bigger time frames show indicators a bit exhausted to the downside, suggesting some upside corrective movement to come in the next hours that could reach 1.4910 without harming current bearish trend. Break under 1.4840 will deny upside corrective movements and accelerate the fall, with movements likely following local indexes and gold.

Support levels: 1.4840 1.4810 1.4760

Resistance levels: 1.4880 1.4910 1.4945

GBP/USD Current price: 1.6286

Gbp continues under pressure despite yesterday’s recovery, approaching quickly to key 1.6240 area where we also found 200 EMA in 4 hours charts. Hourly indicators show pair has room to extend to the downside, with current candle opening under 20 SMA.  Bigger time frames indicators support the downside bias, so expect acceleration under mentioned 1.6240 level. Pair needs to regain 1.6440 to deny previous perspective, not seen for next session.

Support levels: 1.6280 1.6240 1.6185

Resistance levels: 1.6310 1.6350 1.6390

USD/JPY Current price: 92.30

Still bullish, pair keeps rising slowly but firmly; however pair needs to clearly overcome 92.30/50 congestion area, to gain more upside strength. Hourly charts show no clear bias yet 20 SMA remains bullish and guiding the movement as dynamic support; bigger time frames had indicators a bit exhausted to the upside, yet pair remains inside de  4 hours ascendant channel, so downside movements should remain capped by 91.60 zone to keep previous perspective valid. 

Support levels: 92.00 91.60 91.30

Resistance levels: 92.50 92.80 93.10

USD/CHF Current price: 1.0196

Also showing rally favoring dollar has been quite overextended, pair has no signs of turning lower; testing the 1.0200 area, and forming a continuation figure in the hourly, above 1.0210 pair could extend current rally to next key resistance zone 1.0230 before taking a breath.  However, confirmations above mentioned 1.0200 level could open doors for further rises in the next sessions. Pair needs to break under 1.0130 no resume previous bearish trend.

Support levels: 1.0160 1.0130 1.0090

Resistance levels: 10200 1.0230 1.0275

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