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Currency Majors Technical Perspective

Fri, Jul 3 2009, 01:10 GMT
by Valeria Bednarik

FXstreet.com Independent Analyst Team


EUR/USD Current price: 1.3955

EUR/USD chart

Exhausted to the downside after reaching 1.3920, pair is attempting an upside correction in Asia, despite Nikkei open around 150 points to the downside, following American tone. Capped by 1.3965, upside seems limited as bigger time frames are giving bearish continuation signals.

Support levels:  1.3920 1.3880 1.3830 

Resistance levels:  1.3965 1.4000 1.4040

GBP/USD Current price: 1.6365

GBP/USD chart

Downside pressure continues on Gbp, that has formed kind of a triple floor in the hourly, around 1.6320, level to watch to the downside: candle opening under that zone, could trigger more selling in the pair, yet hourly indicators point for an upside correction at the moment. A daily descendant trend line around 1.6390 will be our first resistance level to watch, followed by the 1.6435 zone, neck of the mentioned triple floor. Above that level, pair should extend correction close to the 1.6500 zone.

Support levels:  1.6320 1.6250 1.6200

Resistance levels: 1.6390 1.6420 1.6470

USD/JPY Current Price 95.81

USD/JPY chart

Break under 96.00 zone is limiting the upside potential seen in previous updates, that anyway will remain valid as long as pair remains above 95.50 zone. Hourly indicators suggest more bearish pressure in the pair, as price keeps moving away from 20 SMA. Only above 96.30 the pair could regain some bullish momentum, while under mentioned 95.50 again 94.60 zone comes to play.

Support levels:  95.50 95.20 94.90

Resistance levels:  96.05 96.35 96.70

USD/CHF Current Price: 1.0870

USD/CHF chart

While hourly charts suggest some corrections for the next hours, general bias in the pair remains bullish as investors seem reluctant to bet against the SNB and the BIS. Corrections could extend close to 1.0765 where we expect the downside to hold. 20 SMA with a nice bullish slope support the bias  upside bias after due correction.

Support levels:  1.0840 1.0800 1.0765 

Resistance levels:  1.0910 1.0950 1.1010

  

NOTE: when not detail, supports and resistance levels reflect past session candles minimums or maximums congestion zones.

Published on  Fri, Jul 3 2009, 01:17 GMT

Follow the markets with one of the authors of the Currency Majors Technical Perspective report:

Valeria Bednarik in her blog The advisor Blog.


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Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

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