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Currency Majors Technical Perspective

Valeria Bednarik from FXstreet.com Independent Analyst Team at 12/18/09


EUR/USD Current price: 1.4318

Regaining the downside, pair is quickly approaching to the 1.4300 yesterday’s low support. Hourly charts show indicators supporting the bias ahead of U.S. opening, with strong bearish momentum and bigger time frames also supporting the bias: 4 hours charts 20 SMA remains well above current price and with a strong bearish slope.

Support levels: 1.4300 1.4275 1.4225

Resistance levels:  1.4360 1.4420 1.4460

GBP/USD Current price: 1.6163

Pound has also a bearish tone after pulling back to the 1.6250 area. Under 20 SMA in the hourly chart, and with indicators pointing lower, a confirmation under 1.6160 level should send the pair to test next support zone around 1.6110/20. Bigger time frames show indicators slightly up, suggesting the downside won’t be easy unless an external factor triggers the rally, like gold or stocks. Above 1.6250, expect the pair to regain upside momentum.

Support levels:  1.6110 1.6080 1.6020

Resistance levels: 1.6160 1.6200 1.6250

USD/JPY Current price: 90.36

Gaining ground, pair has turned bullish in the hourly chart as holds above the 90.30 yesterday’s high area. Bigger time frames suggest pair could extend current rally to 90.75 area, past week highs. Weekly close above that level, will support a longer term upside bias in the pair for the weeks to come, as past Asian session, BOJ state that will keep continuing fighting deflation and that suggest interventions are around the corner. Only under 90.00 support pair could revert current upside momentum.

Support levels: 90.30 90.00 89.60

Resistance levels: 90.75 91.00 91.40

USD/CHF Current price: 1.0429

Swiss Franc continues rising despite hourly indicators are quite bullish at this point. Testing 20 SMA in the hourly chart, a clear break under 1.0410 support likely to send the pair lower, and revert the bullish bias, also supported by 4 hours charts indicators.  Don’t discard intervention movements from SNB as EUR7CHF quotes around 1.4950 zone.

Support levels: 1.0410 1.0365 1.0320

Resistance levels: 1.0440 1.0480 1.0510

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