EUR/USD: Decline more likely than not

Currency Majors Technical Perspective

EUR/USD Current price: 1.2532

EURUSD remained indecisive ahead of resistance at 1.2605, as the price action created a double doji candlestick formation. A failure to close above the barrier would all but assure a decline in the major currency. Technical oscillators are supportive of the notion. Support is now seen at 1.2464 August 28th session low.
Support levels: 1.2550 1.2520 1.2480
Resistance levels: 1.2600 1.2630 1.2680

GBP/USD Current price: 1.5852

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The notion of a double top formation remains intact, as a doji candlestick has surfaced in GBPUSD just below 1.5900. With overbought signals still dominant in Stochastics, a decline to 1.5835 initial support continues to be plausible. Downside penetration would extend the decline to the 1.5753 August 28th session low.
Support levels: 1.5840 1.5810 1.5770
Resistance levels: 1.5880 1.5915 1.5950

USD/JPY Current price: 78.52

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An extension higher can be expected following USDJPY’s break back above 78.24 resistance. With bullish momentum likely, upside targets at 78.83 are being activated. A further upside violation of the aforementioned barrier will put into play the 79 handle barrier.
Support levels: 78.10 77.90 77.65
Resistance levels: 78.45 78.80 79.05

AUD/USD: Current price: 1.0212

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Upside potential continues to remain intact for AUDUSD, with the spot price now testing 1.0210 38.2% fib support. The level is being reinforced by a reverse hammer formation, in addition to oversold oscillator signals. A bounce here would put into play barriers at 1.0306.
Support levels: 1.0215 1.0180 1.0140
Resistance levels: 1.0250 1.0280 1.0310

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Published On Wed, Sep 5 2012, 04:36 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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