Currency Majors Technical Perspective
Friday, September 10, 2010
, Posted by Usman Ali Minhas at 8:51 AM
EUR/USD Current price: 1.2695
View Live Chart for the EUR/USD
Euro is under pressure since early Asia, as speculation of Greece leaving Euro zone was again revived: ECB’s board member L. Smaghi said today, "Certainly, if Greece were to exit the euro -- a hypothesis that I make just for the sake of reasoning, but which I consider absurd -- its debt burden would de facto worsen given that it is denominated in euro, and partial default or restructuring would in that case be unavoidable".
Still in past day’s range, hourly chart shows a bearish perspective as indicators head south while price attempts to break below 20 SMA, with 1.2660 as strong support level to watch, as per current week low; lose of this last, could send the pair towards 1.2600/20 support zone.
Support levels: 1.2660 1.2620 1.2580
Resistance levels: 1.2710 1.2735 1.2780
GBP/USD Current price: 1.5404
View Live Chart for the GBP/USD (Select the currency)
Dollar gains across the board on falling gold also hit Pound that lose early Europe momentum and struggles around 1.5400 area. Slightly bearish in the hourly chart with indicators under their midline yet not showing bearish strength, pair needs to lose 1.5370 static support zone to trigger further downside today, towards strong 1.5230 area. 20 SMA around 1.5420 comes as immediate resistance ahead of 1.5470 strong level. 4 hours chart however, shows indicator heading south, supporting the bearish tone for the upcoming American session.
Support levels: 1.5370 1.5330 1.5290
Resistance levels: 1.5420 1.5470 1.5520
USD/JPY Current price: 84.28
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Pair picked up momentum as US bond yields rose towards 2.8% today, overcoming finally the 84.00 level and slightly bullish in the hourly: momentum is heading north thus CCI seems exhausted suggesting some consolidation at least that should hold above mentioned 84.00, before a new spike higher. Strong resistance comes at 84.45 area, followed later by 84.80 and 85.10 zones. Rumors of intervention are heavier today, supporting some covering in the extreme selling positions in the cross.
Support levels: 84.10 83.60 83.35
Resistance levels: 84.45 84.80 85.10
USD/CHF Current price: 1.0245
View Live Chart for the USD/CHF (select the currency)
Consolidating gains at fresh weekly highs, pair broke key 1.0220 area, now immediate support; a bit overextended to the upside according to hourly chart, yet holding a bullish tone, pair could consolidate recent gains before a new leg above daily high of 1.0280. Daily chart shows a probable double bottom at the 1.0065 zone with the neck around mentioned 1.0220. Daily close above that level then, should suggest an upward continuation for next week.
Support levels: 1.0220 1.0170 1.0140
Resistance levels: 1.0280 1.0310 1.0350
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