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Currency Majors Technical Perspective

Valeria Bednarik from FXstreet.com Independent Analyst Team at 12/15/09


EUR/USD Current price: 1.4551

Break under 1.4620 support drove the pair lower, reaching extreme oversold conditions in the hourly chart, at 1.4520 area, from where the pair is slightly correcting to the upside. However, as long as under 1.4620, where corrective pullbacks should halt, pair bias remains strongly bearish ahead of FOMC, as 4 hours indicators point for it. Watch for a break and acceleration under 1.4510 to trigger further sell off in the pair.

Support levels: 1.4510 1.4460 1.4420

Resistance levels:  1.4580 1.4620 1.4660

GBP/USD Current price: 1.6230

Pound holds against major rivals, ranging lower against dollar. Having reached an intraday low around 1.6200, pair is slightly up correcting the not so extreme oversold conditions, yet far under 20 SMA with a nice bearish slope. Bigger time frames show pair strong bearish momentum that should keep the upside capped during next hours, around 1.6330, yesterday’s high zone.

Support levels:   1.6200 1.6160 1.6110

Resistance levels: 1.6250 1.6330 1.6380

USD/JPY Current price: 89.55

Dollar strength drove the pair higher, with hourly indicators supporting further rises ahead. Momentum is not yet exhausted, while 20 SMA support the rise. Bigger time frames also point for further gains, thus pair remains more attached to stocks than the rest. If Wall Street falls, rises likely to remain limited by strong 90.00 level. Only above 90.30 we could see some strong upside acceleration.

Support levels: 89.30 88.80 88.50

Resistance levels:  89.70 90.00 90.10

USD/CHF Current price: 1.0388

Correcting its overbought state, hourly charts show upside rally overextended, and pair pointing from some downside movements ahead. Under 1.0380, correction likely to extend to the 1.0340 area, that should hold to keep bigger time frames bullish bias intact.

Support levels: 1.0380 1.0340 1.0300

Resistance levels:  1.0410 1.0440 1.0490

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