Here is the hourly report, with charts for majors. Enjoy!

http://www.fxstreet.com/technical/analysis-reports/currency-majors-technical-perspective/2009-11-20.html

And dollar bounces down. EUR/USD is testing the 1.4850 area, unable to break lower, while GBP continues under heavy pressure and can’t regain the upside. I will wait for U.S. opening now, as seems the mood is a bit “violent” a this point.

I’m ignoring on purpose Japanese Yen: I can’t see it going nowhere, yet EUR/JPY is back on the daily 200 SMA in the daily, that has been offering strong support since past May. Seems is not going to be today, the breaking lower day, so maybe we are about to see some JPY depreciation against major rivals.

Anyway I will wait U.S. opening!

Here is my choice for today:

http://www.fxstreet.com/technical/forex-strategy/the-best-pair-to-trade-now/2009-11-20.html

We are half an inch away of some panic profit taking in markets, with dollar winning across the board, even against Japanese Yen, Euro at 1.4810, Gbp 1.6450, Aud under 0.9100 and Swissy trying to break 1.0200. Stocks are down gold is down (that’s halting any attempt of appreciation for the Japanese currency) and we could see some rebounds from current levels. Watch gold: a break under $1130/oz, yesterday’s low, could well be the trigger market is waiting for.

Is not just gold; profit taking is hitting  hard specially commodity currencies, and AUD/USD is the one suffering the most. Pair has hit a daily ascendant trend line at 0.9100 and remains close to it, and seems we are going to break it trough. We have quite a support at the very close 0.9080, so I suspect under that level, we may have a good number of stop losses, that if triggered, will send the pair quickly lower to the 0.9030 area. Resistances from current price, lie at 0.9120 0.9150 and 0.9200.

Following yesterday’s comment, Pound extended the fall after being unable to overcome the Fibo level at 1.6840, and is testing right now the key 1.6520 support level. I see the 200 EMA in the 4 hours charts around 1.6490, so I would love to see some technical confirmation under 1.6480 before calling for further falls. Next supports come at 1.6440 and 1.6385. Resistances from here, lie at 1.6550, 1.6600 and  1.6640/60 strong zone.

Bad news for my Euro falling theory: you know that Euro tend to strengthen at this time of the year, because is typically when European financial firms repatriate their overseas investments ahead of the year end? It is, so keep that in mind. Anyway, and taking a look at the 4 hours charts, pair is falling quickly in the last hour or so, supported by gold that is slightly negative today. Approaching to yesterday’s low at 1.4840 area, that’s our first support level for next hours, followed by strong 1.4800/10 level. Under that, pair has an ascendant daily trend line around 1.4750, so that’s the level to watch for longer term definitions. With flat indicators and under 20 SMA still with bearish slope, upside likely remain limited, with resistances today at 1.4890, 1.4930 and above the 1.4960/70 zone.

Wall Street is falling strongly,pushing particularly commodity currencies to the upside; gold is also falling giving further support to greenback. Let’s see if majors manage to break above/under current lows/highs. That should accelerate dollar recovery. As usual, commodity currencies lead the way.

Here is the updated hourly perspective for U.S. session:

http://www.fxstreet.com/technical/analysis-reports/currency-majors-technical-perspective/2009-11-19.v02.html

Japanese Yen is breaking higher agaisnt major rivals, despite unemployment claims in the U.S. save the day and halt the stocks fall printing a 505K reading for the last week;

USD/JPY trades at 88.70, with next key resistance level to watch at 88.20, while EUR/JPY approaches to intradat low of 131.80. Still EUR/JPY has less chances to extend to 131.20, before a pullback as hourly charts look extremely oversold.