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Currency Majors Technical Perspective

Valeria Bednarik from FXstreet.com Independent Analyst Team at 11/09/09


EUR/USD Current price: 1.5001

Consolidating around daily high, Euro remains well bid on DJIA yearly high and gold prices above $ 1100/oz. Hourly charts show pair consolidating in a tight range between 1.4980/1.5020, with a strongly bullish 20 SMA, suggesting more upside to come if local shares replicates Wall Street gains. 4 hours charts show a continuation formation, a symmetrical triangle, thus indicators lost upside momentum and pair remains close to overbought levels; expect an acceleration above 1.5020 to confirm further upside rallies.

Support levels: 1.4980 1.4940 1.4900

Resistance levels:  1.5020 1.5065 1.5110

GBP/USD Current price: 1.6771

Pound continues gaining ground, after correcting the 61.8% of this week rally, coming from 1.6615 low, to Monday high at 1.6842; current candle opening above 20 SMA with a clear bullish slope, supported by hourly indicators, point for further gains in the pair for the next sessions. Bigger time frames support the bias, while 1.6740 should keep the downside limited, as has been a weekly highs twice since past June, turning now into a strong support level.

Support levels: 1.6740 1.6700 1.6650

Resistance levels:  1.6800 1.6842 1.6880

USD/JPY Current price: 89.92

Pair remains unchanged thus holding the general bearish perspective mounted on Japanese Yen strength. Under 20 SMA both in 1 and 4 hours charts, indicators still point to the downside, yet we need to see a clear acceleration under 88.80 to confirm further falls. The upside remains limited by 90.30 strong resistance area.

Support levels:  89.60 89.20 88.80

Resistance levels: 90.00 90.30 90.70

USD/CHF Current price: 1.0075

Swiss Franc continues approaching to parity, still contained by the 1.0030 support area, also yearly low. With 20 SMA acting as dynamic resistance in the hourly charts, and indicators unable to gain upside momentum, pair could extend downside rally, triggering strong selling momentum if 0.9980 get’s broken. Corrective movements should come above 1.0200, not seen for the next 24 hours.

Support levels: 1.0030 0.9980 0.9920

Resistance levels: 1.0100 1.0130 1.0165

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