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Currency Majors Technical Perspective

Thu, Nov 19 2009, 23:34 GMT
by Valeria Bednarik

FXstreet.com Independent Analyst Team  |  View company's profile

EUR/USD Current price: 1.4911

Losing upside momentum in the hourly, indicators had turned to the downside waiting for Nikkei opening, still far from giving signals. Current candle opening under 200 EMA favor further falls for next hours, yet gold and stocks will have the key of risk sentiment movements: further falls both in locals share markets and commodities, likely favor some dollar strength. 4 hours charts show pair still capped under 20 SMA and also with indicators losing momentum, also favoring the downside.

Support levels: 1.4880 1.4840 1.4810

Resistance levels: 1.4930 1.4960 1.5000

GBP/USD Current price: 1.6652

Consolidating around strong 1.6640/60 area, hourly indicators remain bearish for the pair, leaded by 20 SMA with a strong bearish slope. Pair needs to clearly move above 1.6690 area, to attempt a retest of strong 1.6740 that should keep further upside corrective movements; 4 hours indicators show pair correction is almost complete has they turned flat with current consolidation supporting some falls for next hours, with key support level to watch 1.6605, yesterday’s low. Expect some downside acceleration if this last gives up.

Support levels: 1.6605 1.6550 1.6520

Resistance levels: 1.6690 1.6740

USD/JPY Current price: 88.89

Bearish after printing a fresh 6-week low early American session, pair failed to follow trough yet remains strongly bearish both in 1 and 4 hours time frames. Hourly chart show pair unable to regain the 89.00 area, suggesting a retest of the lows for next hours, thus BOJ policy minutes could well trigger some yen falls if they talk about Japan entering deflation as rumored early Thursday. Pair needs to clearly move above 89.40 to lose only part of this strong bearish momentum.

Support levels: 88.60 88.20 87.60

Resistance levels: 89.00 89.40 89.70

USD/CHF Current price: 1.0134

Consolidating just above 200 EMA and strong static support at 1.0130, pair has some slightly bullish perspective ahead, despite hourly indicators remain flat. Anyway, pair rebounded at the 4 hours 20 SMA and indicators lost downside strength. Clear break above 1.0160 area also 20 SMA in the hourly, could favor a retest of the 1.0200 area.

Support levels: 1.0130 1.0100 1.0060

Resistance levels: 1.0165 1.0200 1.0240

Published on  Thu, Nov 19 2009, 23:39 GMT