Currency Majors Technical Perspective

Valeria Bednarik from FXstreet.com Independent Analyst Team at 11/26/09

 

EUR/USD Current price: 1.5130

Pair halted the upside rally barely under 1.5150 resistance area, mentioned in previous update. Overbought in the hourly chart, pair could correct to the downside, thus likely to remain limited for strong bullish momentum in the pair, ahead of U.S. Thanksgiving Holiday. 4 hours charts also have signs of overbought yet no signs of reversal or even correction. Pair needs to break psychological 1.5100 level, to test next support at 1.5060, previous yearly high. As usual lately, pair behavior will be highly related to gold movements: if the metal keeps rising, chances of downside corrective movements dilute.

Support levels: 1.5100 1.5060 1.5020

Resistance levels: 1.5150 1.5185 1.5235

GBP/USD Current price: 1.6702

Pound recovery extended to the 61.8% retracement of the last daily fall yet still remains capped under static resistance level 1.6740. Hourly indicators had lost momentum but price remains above 20 SMA that holds a strong bullish slope, while 4 hours charts indicators also turned lower, suggesting only a clear acceleration above mentioned level could send pair back up. First support comes at the 1.6660 area, while only clearly under 1.6620 pair could trigger further downside movements.

Support levels: 1.6660 1.6620 1.6570

Resistance levels: 1.6740 1.6800 1.6840

USD/JPY Current price: 87.36

Pair has formed a double floor in the hourly chart, at the 87.20 level, also yearly low zone; with hourly indicators exhausted to the downside, and same condition clear in 4 hours charts also, pair could attempt some upside limited corrective movement. Neck of mentioned double floor lies at 87.42 first resistance for next hours ahead of 87.80. If 87.00 gives up, pair could resume fall with immediate support at the 86.60 area, yet pointing to 86.20, June 1995 high.

Support levels: 87.15 86.60 86.20

Resistance levels: 87.42 87.80 89.10

USD/CHF Current price: 0.9969

As expected, break under parity has accelerated the selloff in the pair that reached a fresh yearly low of 0.9960. Over sold in the hourly correction seems likely for the next hours thus reaction In any approach to parity will be key for pair trend: break and acceleration above it, to the 1.0070 area, could signal further upside movements, while retreat from parity will confirm the bearish continuation for the next days.

Support levels: 0.9960 0.9920 0.9885

Resistance levels: 1.000 1.0030 1.0070