Daily Technical Analysis for Majors

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EUR/USD Hit by Wave of Profit Taking

Last Updated on Thursday, 1 March 2012 04:49

Written by FxTT Analysis Department

Thursday, 1 March 2012 04:49

EUR/USD:

European Central Bank’s cash injection passed without a surprise and Fed Chairman Bernanke’s testimony failed to signal new measures to stimulate the US economy. We saw a classic “buy the rumor sell the fact” action from big players. The pair retraced back to previous resistance level at 1.3310 and testing as support now. If this level holds, the pair would try to move higher and test 1.3400 resistance. 1.3480 is the next and strong resistance. If the Bears continue the push downward and manage to break 1.3310, look for support at 1.3220 and 1.3

EUR/USD Chart

GBP/USD:

The cable seems less affected by the troubles within the EU but 1.5990-1.6000 zone is an important zone to overcome in order for pair to continue its rise. The pair is slightly bullish by the time of writing and I will be watching 1.5950 and 1.5880 levels before making any decisions. If GBP/USD goes below 1.5880, we will probably visit 1.5810. Next support level is at 1.5765.

GBP/USD Chart

USD/CHF:

USD/CHF bounced from 0.8930 and now it is pulling back to the first resistance level at 0.9100. I don’t think it will be easy for the bulls to pass this level. However, USD/CHF is slightly manipulated because of the Swiss National Bank and its 1.20 floor on EUR/CHF. If the pair can move above 0.9100, the next strong resistance is located at 0.9250. To the downside, the bears will indeed need to break 0.8930 with 0.8765 being the next key support level

USD/CHF Chart

USD/CAD:

USD/CAD will remain bearish and selling pressure will increase if it can’t move above 0.9900 level. The next support level is located at 0.9790. I am bearish until the pair trades above 1.0053 level

USD/CAD Chart

Source: FxTechnicalTrade.com

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EUR/USD:

The EUR/USD has managed to stay above 1.3100 and climbed slowly but the pair couldn’t pass 1.3160 resistance. There are important events today so the market may stay calm during the Asian session. Investors will focus on the ECB policy decision and participation in the Greek debt swap. Reports about Greece’s debt restructuring efforts made some progress stopped the euro from falling deeper. A positive outcome should clear the way for the next aid package and help Greece avoid a messy default. However, any suggestion the deadline might be extended would probably disappoint the markets. It is quite possible that the pair will continue its bullish tendencies on hopes but the bulls have to move above 1.3160 first. If the pair can pass and stay above this level, the pair may test 1.3240 resistance first, next though resistance will be waiting the bulls at 1.3220. If the pair fails to stay above 1.3160, we will eventually go below 1.3100 and test 1.300

GBP/USD:

It seems that the bearish action on the GBP/USD ended temporarily. The pair was able to stay above 1.57 support but it is still below an important resistance at 1.5765. BoE policy decision today will probably send the cable either above 1.5765 or below 1.5700. If the bulls can pass 1.5765, 1.5810 and 1.5880 will be the next resistance levels ahead of them. If the pair falls below 1.5700, we may see 1.5640 in a short time. 1.5560 is the next support below that.

AUD/USD:

Even though employment figures were worse than expected, AUD/USD managed to stay 1.0550 level so far today. This level is also the 23.6% fibonacci level based on the bullish run from 09662 to 1.0850. As a result I think that the pair will make an attempt to pass 1.0600 resistance first. If the pair can break this level, the bulls may have a chance to test 1.0690 resistance. If the pair closes today below 1.0550, then it will head to 1.0440.

USD/JPY:

After failing to break the 82 line the pair fell back and found support at 80.60. The pair may consolidate between 81.85 and 80.60 this week before we see a breakout. If the pair makes a close above 82, look for 94. On the down side, watch for support at 80.60 and 80.25.

Resource: Fx Technical Trade