EURUSD (1.137): EURUSD invalidated the bear flag pattern from last week and reversed to trend higher. Price action is currently seen being rejected above 1.136, which leaves scope for a downside move towards 1.1281. A successful test of support at this level will potentially mark a rally towards 1.144 through 1.148 level of resistance in the near term. The risk to the upside move comes from the possibility that a break below 1.1281 could see a steeper decline to 1.112. However, we see a confluence near 1.1281 which also marks a breakout from the falling price channel.
GBPUSD (1.524): The British Pound was clearly struggling to break above 1.5345 resistance with current day’s price action turning very bearish. GBPUSD is likely to test the previous support level at 1.5215 – 1.5182. If support holds at this level, GBPUSD could potentially set up for an eventual breakout to the upside on clearing 1.5345. Plotting the new falling price channel, we do notice that there are significant risks to the downside in the event support below 1.511 fails to hold prices. This could potentially mark a downside move towards 1.50 and eventually to 1.499 which will be the next level of support to watch for. The RSI so far points to the bullish bias and it pretty much comes down to the support zone between 1.5210 – 1.511
USDJPY (119.74): Price action seems to be quite frustrating in USDJPY which remains range bound and no signs of any break from this sideways price action. Under such circumstances, the consolidating triangle remains in focus with prices currently attempting to break out from the triangle’s trend line. An eventual breakout could see a test to the lows at 118.404 region. In the event that prices are able to hold at the trend line support from the triangle pattern, we could see another attempt towards 120.5 levels in the near term. As mentioned in previous analysis, a daily close above 121 could potentially mark a move to the upside, while to the downside, 118.404 is the level to watch for.
USDCAD (1.305): USDCAD looks to be recovering off the lows near 1.29385 with prices forming an near inside bar yesterday followed through by bullish price action at the time of writing. We could expect to see potential declines back to 1.2977 which marks a retest of the support level and could set the stage for USDCAD to rally towards 1.32133. From here on, price action could turn a bit tricky. If resistance is established at 1.32133 USDCAD could potentially target the current support at 1.2977 and break below towards 1.28 which marks a strong level of support all the way through to 1.26975.
USDCHF (0.96): USDCHF broke below the support at 0.9667 and is currently hovering near the newly established support at 0.9595. We expect to see a potential move to the upside with a test back to 0.9667 region. Failure to close above this level could see prices decline back to the lows of 0.9595 and eventually to the established support level at 0.955. To the upside, a break above 0.9667 could see prices struggle near the resistance at 0.9720, which is a strong level to break at this point in time. The support level at 0.955 will be an important level to watch for as a break below this support could see USDCHF potentially post steeper declines to test the lower support at 0.9301.
