EUR/USD: About to challenge year low

Currency Majors Technical Perspective

EUR/USD Current price: 1.2311

The EUR/USD extended its slide today on worse than expected US numbers, trading right above the 1.2317 low set after the news. The bearish momentum in Euro is also being feed by the usual rumors and market talks in Europe: the bank supervision agreed on past summit won’t be effective before mid 2013, while authorities discussed next tranche of aid for Greece. Both technical and fundamental views are strongly bearish for the pair, with hourly chart showing indicators heading south while price stands below 20 SMA. Immediate resistance comes at 1.2350 while a test of the 1.2288 low seems inevitable ahead of fresh yearly lows.

Support levels: 1.2310 1.2285 1.2250

Resistance levels: 1.2350 1.2370 1.2410

GBP/USD Current price: 1.5499

View Live Chart for the GBP/USD (Select the currency)

Setting fresh daily lows at the time being, Pound struggles to break below 1.5500 against the greenback, holding an overall bearish tone as per market sentiment. Risk aversion keeps stocks in deep red, with the GBP/USD right below the 1.5510 Fibonacci support and the hourly chart showing price below 20 SMA and indicators heading south below their midlines. In bigger time frames the bearish tone is also present although an acceleration below 1.5490 is needed to confirm more slides today.

Support levels: 1.5490 1.5445 1.5400

Resistance levels: 1.5550 1.5590 1.5620

USD/JPY Current price: 79.56

View Live Chart for the USD/JPY (select the currency)

The USD/JPY fell strongly on US news, breaking below a short term ascendant trend line coming from 79.12 and finding short term support in the 79.40/50 area, neckline of the double roof set at 80.10. Bearish according to the hourly chart, price consolidates near the daily lows aiming for an extension below mentioned support that may ended up in a retest of the 78.80 static support zone.

Support levels: 79.45 79.20 78.80

Resistance levels: 79.80 80.10 80.30

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Published On Fri, Jul 6 2012, 14:06 GMT Previous entries

Valeria Bednarik

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Valeria Bednarik was key speaker at the FXstreet.com International Traders Conference in October 2009 - Barcelona. Valeria Bednarik has been an active trader since 2003, specializing in the International Foreign Exchange Market.

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