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Currency Majors Technical Perspective

Valeria Bednarik from FXstreet.com Independent Analyst Team at 12/01/09


EUR/USD Current price: 1.5005

Quite flat after a choppy session, hourly indicators show pair contained to the upside by 20 SMA that is turning bearish, now around static resistance zone of 1.5020. Indicators are also flat while the same picture comes from 4 hours charts, so we need to see the pair accelerate a break either down or up to define next hours trend; key support level to watch is past Monday low around 1.4960/70, while above 1.5020/40 congestion zone, pair should resume uptrend. After Wall Street managed to end positive, Nikkei could extend past session rise, and RBA decision could also favor the upside.

Support levels:  1.4970 1.4930 1.4880

Resistance levels: 1.5020 1.5060 1.5100

GBP/USD Current price: 1.6433

Pair broke lower and remains bearish for next hours after falling under static support zone around 1.6460. Hourly indicators suggest upside correction is complete, and as long as under that level, bias is to the downside. Price action developing under 20 SMA both in 1 and 4 hours charts, both with a bearish slope, support the bias. Expect stronger movements under 1.6380/1.6400 congestion support zone. Pair needs to clearly regain 1.6520 level to lose some of the bearish tone.

Support levels: 1.6410 1.6385 1.6330

Resistance levels: 1.6460 1.6520 1.6560

USD/JPY Current price: 86.20

Pair remains to the downside in the hourly chart, moving around 20 SMA with a slightly bearish slope at this point, with indicators turning upside down. Bigger time frames hold the bearish tone also, supporting further Japanese yen appreciation during next hours, with 85.80 area as immediate support zone. Break under that level, will  likely trigger further falls, and a probable re test of the year low comes to play. Pair needs to clearly move above 87.10, to change intraday bias, still a very short term perspective, as only above 88.00 daily descendant trend  line, we can call for a interim bottom at 84.80 and see further, yet limited upside movements.

Support levels: 85.80 85.20 84.80

Resistance levels: 86.50 87.80 87.10

USD/CHF Current price: 1.0046

Moving in a tight range, pair remains bearish in the hourly chart, after failing to break above the 1.0070 resistance level. 20 SMA flat under current price, could offer some support at the 1.0030 area, also previous yearly low, yet sentiment likely to push pair back under parity during next hours. Clear confirmation above 1.0140 are needed to deny previous perspective.

Support levels: 1.0030 0.9960 0.9920

Resistance levels: 1.0070 1.0100 1.0135

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