Currency Majors Technical Perspective

EUR/USD: Downside violation of 1.2386 hints further bear pressure

Tue, Aug 7 2012, 04:15 GMT
by Richard C. Lee | FXstreet.com

EUR/USD Current price: 1.2396

EURUSD moved lower off of resistance at 1.2429, declining to test 1.2386 support. An extension of the current trend lower remains contingent on the price action's ability to close below the aforementioned level. Downside violation of the figure would open scope for a decline to 1.2344 .

Support levels:1.2370 1.2340 1.2310

Resistance levels: 1.2410 1.2450 1.2490

GBP/USD Current price: 1.5594

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

Declining from 1.5642 resistance, GBPUSD prospects are bearish. Further anticipated downside is expected to target the 1.5500 round figure barrier. Any upside retracement through the 1.5642 would open the doors for a test of the 1.5736 July 19th session high.

Support levels: 1.5545 1.5520 1.5490

Resistance levels: 1.5610 1.5650 1.5685

USD/JPY Current price: 78.24

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

Failing to overtake resistance via the 78.50 figure, USDJPY has declined in the session, finding support below at 78.03. Any retracement remains dependent on the 78.03 figure, with a decline through the level activating further targets below at 77.85. Any upside correction should be held at bay by the 78.62 session high.
Support levels: 78.10 77.90 77.65

Resistance levels: 78.50 78.75 79.00

AUD/USD: Current price: 1.0563

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

A doji candlestick formation has emerged, lending some downward pressure on the AUDUSD spot rate. A subsequent close below the August 6th low of 1.0535 would confirm the evening star formation, supportive of a decline to 1.0442 support. Further advancement depends on a break of the 1.0592 high.

Support levels: 1.0535 1.0500 1.0470

Resistance levels: 1.0595 1.0640 1.0670

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Published On Tue, Aug 7 2012, 04:19 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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