EUR/USD: further extension can be expected

Currency Majors Technical Perspective

EUR/USD Current price: 1.2300

The previously mentioned double hammer candlestick formation has proven correct, with the EURUSD bouncing off of 1.2200 support. A further extension in the spot rate can be expected, with subsequent resistance via the 1.2359. A close above the level open scopes for a move towards the 1.2441 June 12th session low.

Support levels: 1.2250 1.2210 1.2175

Resistance levels: 1.2290 1.2320 1.2360

GBP/USD Current price: 1.5663

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Extending off of support circa the 1.5400 psychological barrier, the GBPUSD price action is quickly closing in on 1.5710 38.2% fib resistance. A further extension higher would require a close above the level, opening the doors for a potential 1.5821 50% fib resistance test. Any correction will see support provided by the July 11th session high at 1.5577.

Support levels: 1.5620 1.5550 1.5520

Resistance levels: 1.5660 1.5695 1.5730

USD/JPY Current price: 78.91

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USDJPY continued to decline through 79.50 range bottom support, hitting a session low of 78.68. Further declines are anticipated, with resistance above at 79.25 looming heavy for medium term bidders, and even further higher at 80. As a result, focus should be placed on an upcoming test of support at the 78 psychological figure.
Support levels: 78.80 78.50 78.20

Resistance levels: 79.05 79.20 79.45

AUD/USD: Current price: 1.0302

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Now higher through 1.0240 50% fib resistance, Australian dollar is set for an advance on the 1.0378 61.8% fib barrier. The figure is being reinforced by the 1.0379 January 4th session high and is likely to spark some selling in the wake of a failure to overtake the 1.0378. Any correction following a test of 1.0378 will be held at bay by the 1.0200 psychological level.

Support levels: 1.0300 1.0280 1.0250

Resistance levels: 1.0320 1.0350 1.0375

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Published On Tue, Jul 17 2012, 04:27 GMT Previous entries

Richard C. Lee

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Richard Lee is currently a contributing analyst for FXStreet.com. Previously, Richard was a senior FX analyst for DailyFX.com and featured on Yahoo! Finance and Bloomberg. He draws from more than a decade of financial experience in several different asset classes - with emphasis in foreign exchange and equities.

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