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Currency Majors Technical Perspective

Valeria Bednarik from FXstreet.com Independent Analyst Team at 11/16/09


EUR/USD Current price: 1.4955

Following past Friday’s U.S. positive stocks, Nikkei 225 opened to the upside 0.1%, with gold also supporting risk appetite gapping to the upside and quoting at 1123/oz. Euro remains well bid at this point and bullish in the hourly chart, with indicators pointing for further gains for the hegemonic currency. SMA Bigger time frames support the bias as daily indicators lost the negative slope and turned to the upside.

Support levels: 1.4920 1.4880 1.4850 1.4810

Resistance levels: 1.4970 1.5010 1.5060

GBP/USD Current price: 1.6726

Pound continues slightly but firmly bullish, thus still capped by the strong 1.6740 area; with indicators at the hourly showing some exhaustion to the upside, pair could attempt to close the opening gap at 1.6670 area, before next run higher. Break above mentioned resistance, will open doors for a retest of the 1.6840 area, this month high, as long as 1.6640/60 area holds the downside.

Support levels: 1.6690 1.6650 1.6620

Resistance levels:  1.6740 1.6790 1.6840

USD/JPY Current price: 89.53

Consolidating at the lows tested past Friday, pair is forming a small descendant continuation figure, a horizontal channel with base at 89.45, first static support for the pair. With bearish signals in 4 hours charts, and well under 20 SMA in the hourly, general trend remains strongly bearish despite some signs of exhaustion in hourly momentum. Corrective movements to the upside, likely to remain capped under the strong 90.00 area, while break under mentioned low, will trigger acceleration in pair selling.

Support levels: 89.45 89.20 88.80

Resistance levels: 89.70 90.00 90.30

USD/CHF Current price: 1.0090

Back under 1.0100, pair has clear bearish continuation signs in the hourly chart, well under 20 SMA with a clear bearish slope, while indicators show no signs of correction or exhaustion. 4 hours charts support the bias, pointing for another attempt to reach parity in the next sessions. Pair has to clearly break above 1.0200 to change bias, not seen at this point.

Support levels: 1.0060 1.0030 0.9980

Resistance levels: 1.0100 1.0130 1.0165

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