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Currency Majors Technical Perspective

Valeria Bednarik from FXstreet.com Independent Analyst Team at 12/03/09


EUR/USD Current price: 1.5089

After rates and Trichet speech, Euro spiked to test the year high and quickly lost 60 pips, because, as expected ECB started announcing exit strategies, yet in general speech remained dovish, and mentioned strategies not as strong as maybe market was expecting. Also, falling gold is helping greenback across the board, yet movements are far from showing an intraday change: current candle opened above 20 SMA in the hourly that holds the bullish slope; indicators had turned slightly bearish in the hourly, yet as usual, pair likely to remain attached to gold and stocks rather than follow short term technical signs. Watch for a break under 1.5060 to trigger some downside corrective movement while back above 1.5100, pair likely to regain bullish strength.

Support levels:  1.506 1.5035 1.5000

Resistance levels: 1.5100 1.5145 1.5180

GBP/USD Current price: 1.6601

Pound Is losing ground after weak data published earlier today, still holding above the 1.6600 level, Hourly indicators show downside rally a but overextended and price halting at the 200 EMA, so pair will likely start some upside corrective movement now, with immediate resistance at the 1.6620 area, followed by 1.6660; if movement extends above that zone, pair likely to regain bullish strength while under 1.6570,intraday bias will remain strongly bearish.

Support levels: 1.6570 1.6520 1.6480

Resistance levels: 1.6620 1.6660 1.6700

USD/JPY Current price: 88.20

Japanese yen keeps falling ready to confirm midterm bottoming at the 84.80 year low. Daily descendant trend line at 88.60 is key as daily close above that level will set pair to extend the upside during next sessions. Hourly indicators show signs of exhaustion to the upside, so pair needs a short downside correction to gain strength to break higher. Any downside correction should remain above 87.50 area to keep the bullish continuation perspective alive.

Support levels: 88.00 87.50 87.25

Resistance levels:  88.30 88.50 88.80

USD/CHF Current price: 0.9982

No changes, pair remains clearly bearish more due to market sentiment than to technical signs. Capped under 20 SMA in the hourly chart, indicators had turned slightly bullish, yet general trend remains to the downside. Only a clear break above 1.0050/70 area, could change intraday bias in the pair

Support levels: 0.9960 0.9920 0.9880

Resistance levels:  1.0000 1.0030 1.0070

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