Short Term Technical Analysis for Majors (08:30 GMT)

Mar 9, 2010
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EUR/USD

Correction off 1.2142, 19 May yearly low, stalled at 1.2671, just above 50% retracement of 1.3093/1.2142 downleg on Friday, ahead of reversal. Losses of 1.2469/55 support zone and break of trendline support, confirmed weakness that is currently breaking through 1.2228 support. This now opens 1.2142/34, 19 May low / 50% retracement of the long-term 0.8225/1.6039 ascend. Immediate cap now stands at 1.2415.

Res: 1.2479, 1.2527, 1.2597, 1.2671
Sup: 1.2200, 1.2142, 1.2134, 1.2115

eurusd_20100525082608.gif



GBP/USD

Upside rejection at 1.4527 seen yesterday, may signal the end of the corrective phase off the recent 1.4230/50 lows. The recent break under 1.4351 support sparks further weakness, currently breaking through 1.4300, to attempt at 1.4230 and lower, to reach fresh yearly lows. Only regain of 1.4527 will improve the outlook.

Res: 1.4422, 1.4462, 1.4500, 1.4527
Sup: 1.4250, 1.4230, 1.4200, 1.4155

gbpusd_20100525082542.gif



USD/JPY

Is attempting to complete a 3 day negative continuation formation, as recovery off 88.95 failed at 90.60 yesterday. This may signal a fresh decline to 89.21/88.95 ahead of 88.35, trendline off Nov 2009 low. Potential break here risks a significant medium-term weakness. Only break above 90.31/60 would neutralize immediate bears.

Res: 90.31, 90.60, 90.93, 91.53
Sup: 89.53, 89.21, 88.95, 88.35

usdjpy_20100525082510.gif



USD/CHF

Structure remains solid as the market climbs to challenge a long-term falling trendline at 1.1785. Current push above last weeks 1.1584 high now opening up 1.1675/1.1725, with 1.1641 been reached so far. Only below 1.1449/17 would risk a stronger correction towards 1.1266.


Res: 1.1641, 1.1675, 1.1700, 1.1725
Sup: 1.1550, 1.1511, 1.1449, 1.1417

usdchf_20100525082427.gif