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Currency Majors Technical Perspective

Valeria Bednarik from FXstreet.com Independent Analyst Team at 12/27/09


EUR/USD Current price: 1.4367

Thin volume due to holidays extends in this Asian opening with New Zealand and Australia markets closed. Pair opened slightly to the upside, still capped under 1.4380 area, first support for next hours, ahead of the 1.4420 area, past Friday’s high, also 200 EMA in the hourly chart. With indicators slightly bullish, pair needs at least to confirm above this last to extend the upside during next hours. Under 1.4350 area, key support lies at 1.4320: if this last gives up, pair likely to resume down trend. Bigger time frames remain generally bearish, supporting past week trend.

Support levels: 1.4350 1.4320 1.4280

Resistance levels:  1.4380 1.4420 1.4460

GBP/USD Current price: 1.5938

Despite starting the session around 1.5985, Pound is quickly falling, approaching to key 1.5920 support zone. Under flat 20 SMA, hourly indicators are slightly bullish suggesting a short upside corrective movement could take place before a new leg down. Under past week low, mentioned 1.5920 area, pair could extend the fall with immediate support at 1.5860, thus a midterm target around 1.5700, past 7 months low.

Support levels: 1.5920 1.5880 1.5820

Resistance levels:  1.5985 1.6010 1.6060

USD/JPY Current price: 91.57

Unchanged since last update, pair remains contained under 91.85 area, thus moving in a tight range above 91.10 support. Slightly bearish in the hourly, 4 hours charts also look slightly bearish, supporting the bias; only under 90.80 support, not seen for the next hours, pair could extend the rally and confirm further falls, meanwhile, movements should be considered corrective. Above 91.85 that the pair tested several times among the past week expect the pair to extend the upside and turn bullish for the next sessions.

Support levels:  91.30 91.10 90.80

Resistance levels:  91.85 92.10 92.40

USD/CHF Current price: 1.0368

Swiss Franc strength extended during past Friday particularly due to EUR7CHF downside acceleration. USD/CHF remains bearish at this point, after breaking under strong 1.0400 level that caps the upside. Hourly indicators support the bias, while price action develops under 20 SMA that is slowly gaining some bearish strength. Bigger time frames indicators support the bias.

Support levels: 1.0350 1.0320 1.0280

Resistance levels: 1.0400 1.0440 1.0480

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