Currency Majors Technical Perspective
Valeria Bednarik from FXstreet.com Independent Analyst Team at 12/14/09
EUR/USD Current price: 1.4625
Asian session started quietly, with dollar holding past week gains against major rivals across the board. EUR/USD quotes around past Friday’s close of 1.4620, with dollar consolidating gains. Asian stocks had a positive perspective from Wall Street gains, thus correlation between currencies and stocks, likely to continue detaching. Volumes become thinner ahead of Christmas, so pair likely to consolidate in range. Hourly charts show a small flag consolidation formation, with indicators flat at the lows, yet 20 SMA strongly bearish above current price. Bigger time frames support the bearish bias for next sessions, although an upside corrective movement should not be discarded.
Support levels: 1.4580 1.4550 1.4510
Resistance levels: 1.4660 1.4690 1.4730
GBP/USD Current price: 1.6219
Opening to the downside with a small gap, pair keeps holding a bearish tone coming from hourly indicators, as also weekly opening took place under the neck of the H&S formation clear in daily charts, around 1.6250. Pullbacks to that are likely, as the pair will attempt to fill the gap, yet if price retreats strongly from that area, further falls are seen ahead. 4 hours indicators are also bearish supporting the view. Only above 1.6360, not seen at this point, pair can regain some upside strength.
Support levels: 1.6200 1.6160 1.6120
Resistance levels: 1.6250 1.6310 1.6360
USD/JPY Current price: 89.20
Pair opened slightly up gapping to the upside, and turning hourly indicators slightly bullish at this point. Above 20 SMA with a nice upside slope, and acting as dynamic support for the pair, confirmations above 89.50 should trigger some upside momentum, while under 88.80, pair likely to regain the downside. Bigger time frames are slightly bullish, yet not giving clear signs of continuation. Watch for a downside corrective movement to be triggered under mentioned 88.80 support.
Support levels: 88.80 88.40 88.10
Resistance levels: 89.50 89.90 90.30
USD/CHF Current price: 1.0346
Starting the week barely above the 1.0340 strong zone, pair should extend the upside to confirm midterm further rises. Consolidating in a tight range close to past Friday’s highs, under 1.0320 expect some deeper downside corrections as hourly indicators are exhausted to the upside. Bearish movements should remain contained by 1.0240 support zone to be considered corrective, as bigger time frames support further rises for next sessions.
Support levels: 1.0320 1.0285 1.0240
Resistance levels: 1.0380 1.0440 1.0490
