EUR/USD: Outlook supportive of an adavance

Currency Majors Technical Perspective

EUR/USD Current price: 1.2280

Bullish signals for an extension to 1.2359 remain intact for the moment, with stochastic indications still supportive of an advance. However, the figure is being reinforced by a 1.3282-1.2677 descending trendline, which is likely to cap any further momentum in the single currency. Any corrective decline here would be met with barriers via the 1.2200 psychological barrier.

Support levels: 1.2250 1.2210 1.2161

Resistance levels: 1.2310 1.2340 1.2380

GBP/USD Current price: 1.5635

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

Resistance at 1.5716 continues to hover over GBPUSD price action, as the major currency’s price action remains momentarily stalled. A doji candlestick has now emerged, following yesterday’s hanging man formation – supportive of a near term turn in pound sterling. The notion of a retracement continues to activate support targets at 1.5553.

Support levels: 1.5630 1.5600 1.5550

Resistance levels: 1.5680 1.5730 1.5770

USD/JPY Current price: 78.52

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USDJPY continued its decline through 79.50, dropping through 79.00 in the session. Although the price action has broken through key support, indicative of further declines, formidable barriers below at 78.25 are likely to cap any additional short term bearish momentum. Stochastic signals are supportive of the notion as signals dip further below oversold territory.

Support levels: 78.65 78.40 78.10

Resistance levels: 79.00 79.20 79.45

AUD/USD: Current price: 1.0387

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

With the Australian dollar surging to a 2 ½ month high, resistance at the April 27th high of 1.0473 is now looming for the spot rate. Failure to penetrate the aforementioned will set the spot rate up for a correction back to initial support at the key 1.0300 psychological level. A close below would expose the 1.0223 support or the June 20th session high.

Support levels: 1.0330 1.0300 1.0270

Resistance levels: 1.0370 1.0420 1.0470

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Published On Thu, Jul 19 2012, 04:29 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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