Currency Majors Technical Perspective
Valeria Bednarik from FXstreet.com Independent Analyst Team at 10/28/09
EUR/USD Current price: 1.4819
Nikkei opened slightly bearish, halting pair upside corrective movement. With hourly indicators losing upside strength, 20 SMA continues strongly bearish and acting ad dynamic resistance level. Small continuation triangle clear in the hourly, break under 1.4800, immediate support level, could signal more downside ahead of current session, yet 4 hours charts show indicators exhausted to the downside, suggesting some short upside corrective movements before next down leg.
Support levels: 1.4800 1.4770 1.4740
Resistance levels: 1.4840 1.4890 1.4625
GBP/USD Current price: 1.6385
Still looking slightly bullish in the hourly, the upside remains capped by 20 SMA in 4 hours charts currently around 1.6400 with a clear bearish slope. Pair needs to break above yesterday’s high around 1.6440 to gain some upside momentum, while 1.6520 seems to be a likely target if above mentioned resistance zone. To the downside, pair has a strong congestion zone between 1.6280/1.6320 that must give up to see pair breaking lower.
Support levels: 1.6360 1.6315 1.6280
Resistance levels: 1.6425 1.6470 1.6520
USD/JPY Current price: 91.65
Testing past Monday’s low, pair turned to the downside after U.S. Treasury 2-year auction, push treasuries down. Technically bearish in the hourly chart, current movement could be considered corrective as long as above 91.00 area, after past day’s upside rally. If 91.00 level give up, expect the pair to gain some downside momentum. Midterm upside bias remains capped by strong 92.50 zone.
Support levels: 91.55 91.30 91.00
Resistance levels: 92.00 92.30 92.60
USD/CHF Current price: 1.0210
Hourly charts show pair slightly bearish, thus likely to remain corrective after past two day’s rally. Bigger time frames indicators also seem exhausted to the upside, pointing for some downside corrections in next hours. Yesterday’s high of 1.0250 is the key resistance area to watch, as break above that level, could trigger more dollar gains.
Support levels: 1.0200 1.0170 1.0130
Resistance levels: 1.0250 1.0285 1.0320
