Currency Majors Technical Perspective
Thursday, August 5, 2010
, Posted by Usman Ali Minhas at 10:34 AM
EUR/USD Current Price: 1.3171
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Testing 20 SMA in the hourly chart, pair lost steam despite spiking to 1.3230 on worse than expected weekly unemployment claims in the US. Still holding a slightly positive tone according to hourly indicators, pair needs to recover above 1.3210 area now to hold the bullish tone. Key support comes at 1.3120 zone, where the pair should find a bottom today; under that level, a good number of stop losses should be gathered and could be triggered, exacerbating the fall in the pair.
Support levels: 1.3150 1.3120 1.3060
Resistance levels: 1.3210 1.3235 1.3270
GBP/USD Current Price: 1.5872
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Breaking lower, Pound has turned bearish according to hourly charts, with indicators crossing their midlines, and price aiming to close current candle under 20 SMA around 1.5880 also strong static level. Confirmation here should signal further falls towards 1.5820 daily low, and even further towards strong 1.5770 area.
Support levels: 1.5820 1.5770 1.5730
Resistance levels: 1.5880 1.5920 1.5970
USD/JPY Current Price: 85.87
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Back under 86.00, pair recovered its bearish outlook on worse than expected US data and falling stocks. Momentum in the hourly chart remains bearish suggesting further downside pressure in the pair, with 85.30 area as next downside target if the afforded mentioned gives up; main bearish target remains around 84.80 past November 2009 low.
Support levels: 85.70 85.30 84.80
Resistance levels: 86.10 86.40 86.70
USD/CHF Current Price: 1.0447
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Swiss Franc retreated from 1.0550 strong resistance area tested yesterday, all the way back to 1.0410 support; currently recovering some ground, hourly chart shows indicators still bearish keeping the upside limited for now; watch for the 1.0475 immediate resistance zone: only clearly above the bearish tone will dilute, and pair could aim higher towards 1.0550 strong resistance again.
Support levels: 1.0410 1.0380 1.0350
Resistance levels: 1.0475 1.0510 1.0550
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