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Currency Majors Technical Perspective

Valeria Bednarik from FXstreet.com Independent Analyst Team at 11/23/09


EUR/USD Current price: 1.4865

Flat in the hourly chart, pair remains under 20 SMA while indicators in the chart look slightly bearish. Bigger time frames remain bearish after today’s opening to the downside yet no much action is expected during current session: while risk appetite downturn will keep the par from running higher, rising gold prices likely to limit downside movements. While 1.4930 is the key level to watch to the upside during the next sessions, 1.4750 daily ascendant trend line, is the key level to follow to the downside, as break under that zone could confirm further falls for the week.

Support levels: 1.4840 1.4105 1.4750

Resistance levels: 1.4890 1.4930 1.4970

GBP/USD Current price: 1.6489

Pound remains close to past Friday’s lows, with a bearish perspective coming from hourly indicators: break under 1.6460 likely to trigger further falls, as 20 SMA above current price holds an interesting bearish slope. However, 4 hours indicators show some signs of exhaustion to the downside, suggesting some upside movement first: if contained under 1.6520/50 resistance area, pair likely to quickly returned to the downside, while above those levels, corrective movement could extend to the 1.6600 area.

Support levels: 1.6460 1.6410 1.6380

Resistance levels: 1.6520 1.6550 1.6600

USD/JPY Current price: 88.88

Still flat in a tight range around 89.00 area, pair has no clear cues for next hours coming from 4 hours charts, while hourly indicators had turned bearish while price keeps moving under flat 20 SMA. Pair needs to clear the 89.70 area to the upside to attempt further rises, while under 88.60 downside acceleration could send it close to the 88.20 level.

Support levels: 88.80 88.60 88.20

Resistance levels: 89.10 89.40 89.70

USD/CHF Current price: 1.0177

Pair started the week slightly bullish, still capped by the 1.0200 strong area. 20 SMA under current price is first support level to consider around 1.0165, as it’s losing part of it’s strength; break above, will send the pair lower, close to the 1.0130 before the 1.0100 area. To the upside, above 1.0200 pair needs to confirm a break above next resistance level, around 1.0240 to extend past Friday’s rally.

Support levels: 1.0165 1.0130 1.0100

Resistance levels: 1.0200 1.0240 1.0285

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