Currency Majors Technical Perspective

Valeria Bednarik from FXstreet.com Independent Analyst Team at 12/22/09

 

EUR/USD Current price: 1.4306

Regaining the 1.4300 level after worse than expected GDP q/q reading in the U.S., hourly charts show slightly bullish indicators with price above 20 SMA; maximums zone around 1.4340 should be overcome to trigger further upside momentum, thus seen limited for today, as stocks are back up while gold is back down after the spikes triggered by GDP. Bigger time frames remain bearish, yet over sold. Watch for market to remain thin during American session.

Support levels: 1.4260 1.4225 1.4185

Resistance levels:  1.4340 1.4375 1.4410

GBP/USD Current price: 1.6014


Still weak, Pound bottomed around 1.5970 support area, still unable to regain upside strength. Hourly charts show price under 20 SMA and a bearish momentum, while pair already corrected previous downside spike. As long as under 1.6060, pair bias remains intraday bearish. Break under 1.5970 area will likely trigger further falls.

Support levels: 1.5970 1.5920 1.5880

Resistance levels: 1.6060 1.6110 1.6150

USD/JPY Current price: 91.43


Still bullish, pair hold above the 20 SMA in the hourly, that is guiding the pair to the upside; daily opening above 100 SMA is supporting further rises in the pair, along with bigger time frames. Watch for a test of the 92.00 level if the pair manages to accelerate above today’s high.

Support levels:  91.30 91.00 90.60

Resistance levels:  91.65 92.00 92.40

USD/CHF Current price: 1.0476


After the data, pair fell to test the 1.0440 area, leaving hourly indicators slightly bearish, thus current recovery along with 20 SMA capping the downside, suggest further upside continuation. Watch for the 1.0510 area to give up, while 1.0440 should remain unbroken to support the bullish bias ahead of next sessions.

Support levels: 1.0440 1.0400 1.0365

Resistance levels: 1.0480 1.0510 1.0550