Forex World in Your Hands

Wed, Aug 26 2009, 00:15 GMT
by Valeria Bednarik

Another failure attempt to break above 1.4340 is putting the pair under pressure with Japan opening; hourly indicators are giving some bearish signals at this point with price also under the 20 SMA that lost the bullish slope; same conditions are seen also in 4 hours charts, thus pair must break and confirm under key 1.4270 support zone, to extend the downside rally.

Support levels: 1.4270 1.4240 1.4200

Resistance levels 1.4310 1.4340 1.4375

GBP/USD Current price: 1.6315

Already under yesterday’s low, bearish pressure remains intact in the pair, supported not only by indicators and strongly bearish 20 SMA in the hourly, but also by general sentiment against pound. First strong support comes at 1.6270 past week low, where we can also find a short term daily ascendant trend line; once the pair clears that support, next target will be close to 1.6200 base of these last 3 months range. Not seen at this point, pair needs to regain the 1.6520 level to change bias and turn bullish.

Support levels: 1.6275 1.6220 1.6160

Resistance levels: 1.6350 1.6400 1.6440

USD/JPY Current price: 93.96

Pair remains trapped in range, yet general bias remains bearish, after breaching back down the 94.00 level; not clear in the hourly, bigger time frames support further falls, that could be triggered with falling regional indexes and break under 93.70 support zone. Final support for next hours came at 97.20, while bias may change only clearly above 94.50.

Support levels: 93.70 93.40 93.20

Resistance levels: 94.00 94.45 94.80

USD/CHF Current price: 1.0623

After hitting back strong support zone around 1.0550, pair slowly regained the upside; a probable triple floor is forming around that zone, suggesting pair has bottomed in the midterm; hourly indicators along with 4 hours ones, support an upside continuation for the next hours, but clear movements above 1.0640 will favor the bias and made it stronger. Under 1.0600, downside will come back into play.

Support levels: 1.0600 1.0580 1.0550 1.0520

Resistance levels: 1.0640 1.0670 1.0700