EURUSD (1.066): The sharp declines since the past couple of weeks saw the EURUSD break the longer term support near 1.10 – 1.0977 region followed by a lower support break at 1.0812. The median line currently points to a continued decline as the next support at 1.05645 remains very likely to be tested in the near term. A pullback could however be expected, at the very least to 1.0812 to retest for a firm test of resistance. This pullback would see a retest of the now resistance level at 1.0812 and the median line as well with the downside target to 1.05645 being the likely decline in the next few weeks. There is a strong support level between 105645 through 1.04615 and prices are likely to stall at this support before further direction is established.
GBPUSD (1.520): GBPUSD is currently retesting the broken support for resistance near 1.5215 through 1.5278. The resistance level is likely to hold considering the doji reversal seen two days ago. If prices fail to close above 1.5215 and above the doji’s high of 1.5263, GBPUSD could see further downside in store with the lower support coming in at 1.49921. With prices trading in the falling price channel the momentum remains to the downside especially with resistance at 1.5263 – 1.5215 being confirmed the horizontal resistance level and the previous rising trend line which rejected prices resulting in the doji high.
USDJPY (123.26): USDJPY closed on a strongly bullish note yesterday and the resulting price action leads to a further upside towards 125 region. Price is currently trading near the resistance level of 123.3 which previously saw prices trending lower. A break higher could pave way for a continued rally to 123.1 region. Alternatively, in the event that prices stall at the current resistance level, USDJPY could potentially break down from the rising price channel and test the previous support at 121.5 region.
USDCAD (1.331): USDCAD saw a complete reversal after trading near the 1.2977 support. Prices are back to the previous resistance level at 1.333 region. A break out higher could see new highs being posted in USDCAD, but the Stochastics oscillator points to a short term exhaustion in the rally. With support coming in close at 1.3262, the tight consolidation points to a break out in the near term. To the downside, a close below 1.311 will confirm a move lower back to 1.2977 followed by 1.2521 while to the upside, the longer term target at 1.38814 remains plausible.
USDCHF (1.011): USDCHF continues to trend higher but there are evident signs of a potential pullback. Price is now close to the median line and any reaction or even a failure to touch the median line could see a move lower to the support at 0.9941. There is also the scope for a larger decline down to 0.9792 which remains a major resistance level that was broken but has not yet been tested for support. A close below 1.0079 with a bearish candlestick pattern could confirm the moves to the downside.
