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Currency Majors Technical Perspective

Valeria Bednarik from FXstreet.com Independent Analyst Team at 12/28/09


EUR/USD Current price: 1.4404

U.S. stocks market opened strongly up, while gold is losing the $ 1110/oz level, suggesting some dollar gains ahead of current session.  Hourly indicators seem a bit exhausted to the upside, while 200 EMA keeps capping the upside. Still volume remains extremely thin and pair could exacerbate any rally; 4 hours charts show pair lost also upside momentum, with flat indicators. First strong support lies at the 1.4350 area, and seems unlikely pair accelerate to the downside, unless clear break under that level. To the upside, watch mentioned 200 EMA around 1.4410/20 area.

Support levels: 1.4380 1.4350 1.4320

Resistance levels:  1.4420 1.4460 1.4485

GBP/USD Current price: 1.5990

Pound regained some upside strength since early Europe, still capped under 1.6000 zone. Hourly charts show indicators still bullish reaching extremes, with no signs still of changing bias. 1.5956 area, where we have 20 SMA  in the hourly with a slightly bearish slope, is first support zone to consider: break lower could send the pair to retest past week low around 1.5920.

Support levels: 1.5965 1.5920 1.5880

Resistance levels:  1.6010 1.6060 1.6100

USD/JPY Current price: 91.57

Still trapped in a tight range, pair is unchanged since last update: the 91.85 area remains to be the key level to watch to the upside, as break above could suggest some midterm continuation, while only under 90.80 support, not seen for the next hours, pair could extend the rally and confirm further falls.

Support levels:  91.30 91.10 90.80

Resistance levels:  91.85 92.10 92.40

USD/CHF Current price: 1.0333

Swiss Franc strength continues, with the pair reaching the 1.0320 support zone, as EUR/CHF keeps hovering around 9 months low of 1.4870. Hourly indicators remain bearish, with 1.0365 static resistance zone as first zone to overcome to change current bearish bias. Under 1.0280, expect further downside acceleration, thus keep in mind, SNB has been intervening markets the last trading days of the month for the last 3 months.

Support levels: 1.0320 1.0280 1.0230

Resistance levels: 1.0365 1.0400 1.0440

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