Currency Majors Technical Perspective
Valeria Bednarik from FXstreet.com Independent Analyst Team at 12/09/09
EUR/USD Current price: 1.4686
Having overcome yesterday’s low already, pair remains bearish thus oversold both in 1 and 4 hours charts, suggesting pair needs some upside corrective movement before gaining strong downside momentum. 20 SMA in the hourly chart with a strong bearish slope above current price, support the bias. The 1.4620 support zone, 61.8% retracement of the monthly fall 1.6038/1.2330 remains as a key midterm level to watch, as daily close under that zone, will signal further falls ahead for the pair.
Support levels: 1.4660 1.4620 1.4580
Resistance levels: 1.4730 1.4780 1.4820
Breaking lower, pair remains clearly bearish in the hourly chart, breaking trough 1.6250 support zone. Indicators show limited upside correction might be over and pair is ready for another leg down, while bigger time frames indicators support the bias. Daily charts show a head and shoulders formation, with neck line at current 1.6250 level. Clear break under and a pullback could trigger the figure formation and result in further Pound loses.
Support levels: 1.6200 1.6160 1.6120
Resistance levels: 1.6300 1.6340 1.6380
Pair remains under the 38.2% retracement of the daily rally 84.80/90.76, consolidating in a tight range since late European session, turning hourly indicators flat with no clear bias for next hours. Still 20 SMA above current price and with a nice bearish slope, plus 4 hours charts indicators, support more bearish movements in the pair, likely to began if breaks under past Tuesday low of 88.16. 87.70, 50% of the same rally is next support in line.
Support levels: 88.20 87.70 87.30
Resistance levels: 88.60 89.00 89.35
Consolidating early gains, hourly charts show pair remains bullish despite slightly over bought; corrective movements should remain above 1.0200 key support to keep current bullish trend intact, while above 1.0280 resistance area, pair likely to confirm such extension, approaching to the 1.0400 area.
Support levels: 1.0240 1.0200 1.0170
Resistance levels: 1.0285 1.0320 1.0380
