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Currency Majors Technical Perspective

Valeria Bednarik from FXstreet.com Independent Analyst Team at 12/20/09


EUR/USD Current price: 1.4320

Opening lower, dollar continues previous Friday advance against Euro, gapping to the downside in early interbank trading. Pair reached a 3 month low around 1.4260, key support to consider during next hours, as break and acceleration under that level will send the pair lower during next sessions. With volume getting thinner due to Christmas holidays, hourly charts show flat indicators with no clear bias next hours, while price holds under flat 20 SMA. Bigger time frames show pair oversold, suggesting some upside corrective movements ahead, thus likely limited by strong bearish trend dominating pair.

Support levels: 1.4300 1.4265 1.4225

Resistance levels:  1.4360 1.4420 1.4460

GBP/USD Current price: 1.6141

Holding around past week close, Pound opened the week with hourly charts´ indicators slightly bullish; however pair holds under key 1.6160 area,  also 20 SMA in current time frame, suggesting only a confirmation above that level could trigger some upside momentum in the pair. Bigger time frames show still some bearish momentum losing strength: pair needs to break clearly under 1.6100 to extend the downside rally.

Support levels:  1.6100 1.6060 1.6020

Resistance levels: 1.6160 1.6200 1.6250

USD/JPY Current price: 90.47

Pair remains slightly bullish after failure to break above 90.70/80 area past Friday, yet close to that first resistance area. Indicators in the hourly chart show chances of further upside continuation for next hours, as also do bigger time frames with day starting barely above 100 SMA in the daily chart. Confirmations above 91.00, past week high, could trigger more upside momentum in the pair, while the downside seems now limited by the 90.00 level.

Support levels: 90.30 90.00 89.60

Resistance levels: 90.75 91.00 91.40

USD/CHF Current price: 1.0404

Gapping to the downside amid stop losses on EUR/CHF that is testing 9 months low around 1.4880, Swiss Franc seems regaining its safe haven condition particularly against Euro, struggling higher against other rivals. Hourly indicators point for further losses in current pair if 1.0365 support area gives up. Pair needs to regain the 1.0440 zone, also above 20 SMA, to change intraday bearish bias.

Support levels: 1.0400 1.0365 1.0320

Resistance levels: 1.0440 1.0480 1.0510

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