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Currency Majors Technical Perspective

Valeria Bednarik from FXstreet.com Independent Analyst Team at 12/07/09


EUR/USD Current price: 1.4800

Pair remains under selling pressure following Asia and Europe tone. Unable to clearly regain the 1.4800 level after several attempts among the last hours, pair is contained in a tight range probably waiting for Wall Street opening. Hourly indicators had lost the extreme over sold  conditions, while remain flat at the lows; still 20 SMA strong bearish slope support further falls, as well as 4 hours indicators, that support the bias. Break under today’s low, at the 1.4760 support zone, should accelerate the downward pressure.

Support levels:  1.4760 1.4720 1.4680

Resistance levels: 1.4820 1.4860 1.4890

GBP/USD Current price: 1.6338

Consolidating close to daily low, pair is set to extend the downside rally, as general trend remains bearish ahead of U.S. session. Pair has also corrected the oversold condition in indicators, without recovering ground suggesting more falls are likely during next hours. However we need a clear confirmation under today’s low static support zone around 1.6310 to confirm such movement. 4 hours charts indicators also favor more bearish rallies.

Support levels: 1.6310 1.6260 1.6220

Resistance levels: 1.6380 1.6420 1.6460

USD/JPY Current price: 89.95

Japanese yen strength remains limited, as pair continues attached to the 90.00 level. Hourly charts show exhausted indicators to the downside, so further corrections seem limited by strong 89.50 support area. Above 90.10, 20 SMA and first resistance level to consider, pair likely to regain the upside and retest the 90.50 area, to fill past Asian session opening gap.

Support levels:  89.80 89.50 89.20

Resistance levels:  90.10 90.50 90.85

USD/CHF Current price: 1.0212

Above 1.0200 yet still contained by key midterm resistance level around 1.0240, pair is over bought in the hourly, pointing for some downside corrective movements if manages to lose the 1.0200 mentioned static support level. Bigger time frames show strong upside momentum intact for the pair, so any confirmation above mentioned 1.0240 today’s high area, should trigger further upside movements.

Support levels: 1.0200 1.0170 1.0135

Resistance levels:  1.0240 1.0285 1.0320

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