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Currency Majors Technical Perspective

Valeria Bednarik from FXstreet.com Independent Analyst Team at 12/06/09


EUR/USD Current price: 1.4867

After past Friday’s rally pair is way oversold in the hourly chart, gapping to the upside at the opening around 20 pips; 4 hours charts indicators are also oversold suggesting some upside correction ahead before further definitions. Starting the day under daily ascendant trend line coming from March lows, pair has turned bearish in the midterm yet needs to break under key 1.4800 strong static level to confirm further falls.  To the upside, 1.4940 pullback to the mentioned trend line, is key level to watch: corrections should remain under that zone to remain bearish.

Support levels:  1.4840 1.4800 1.4760

Resistance levels: 1.4885 1.4940 1.4970

GBP/USD Current price: 1.6468

Hovering around 1.6460 support zone, pair has a slightly bullish perspective for next hours, mostly corrective as indicators both in 1 and 4 hours charts had reach extreme oversold levels after past Friday’s U.S. employment data. Daily charts however remain strongly bearish, so upside movements should remain limited to confirm the bias, with 1.6550 as key resistance level to watch. Confirmations under past Friday’s low around 1.6420, should trigger further downside momentum in the pair, better if some corrective movement occur first.

Support levels: 1.6460 1.6420 1.6370

Resistance levels: 1.6520 1.6550 1.6600

USD/JPY Current price: 90.28

Strong recovery above 90.00 level, pair is set for some downside corrective movement, supported by likely rising Nikkei 225 index, after last Wall Street positive close. Overbought, corrections likely to extend under 90.00 level, with 89.55 as first support zone to consider, ahead of the 89.20 area, where 20 SMA with a strong bullish slope should cap the downside. Above 90.76, past Friday’s high, next resistance will come at the 91.20 area.

Support levels:  89.90 89.55 89.20

Resistance levels:  90.35 90.75 91.20

USD/CHF Current price: 1.0163

Dollar is overbought also against the Swissy that anyway remains under key 1.0200 resistance level. Hourly indicators are exhausted to the upside, however, pair likely to hold above 1.0100 support, as 20 SMA crossed to the upside 200 EMA supporting further rises ahead. Midterm confirmations of upside continuation, will come for the pair with a daily close above the 1.0240 zone.

Support levels: 1.0135 1.0100 1.0070

Resistance levels:  1.0200 1.0240 1.0285

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