EURUSD (1.114): EURUSD has fallen sharply ever since prices broke down from the 1.1373 – 1.1320 level of support/resistance and an eventual breakout from the lower median line. Plotting the new falling median line to reflect the price action, we see the dynamic support coming into play at the lower median line. This indicates a short term pullback to 1.1320 being very likely. The Stochastics is currently very oversold which could see prices continue to trend lower. Support at 1.105 – 1.10285 remains under consideration for the moment ahead of a correction to 1.1320 resistance. Establishing resistance near 1.1373 – 1.1320 could see EURUSD resume a new leg of declines to the downside, eventually targeting 1.081 on a break below 1.105 – 1.10285
USDJPY (111.29): USDJPY has been drifting higher after falling below the 106.65 lows. The minor support level at 108.178 – 107.69 which initially held the declines around early April has not yet been tested firmly for support indicating a downside risk in USDJPY. Price action is currently in the resistance level of 111.0 – 112.0 and the Stochastics is showing a hidden divergence near this zone. Unless USDJPY breaks above 112.0, the hidden divergence will point to a correction down to 108.178 – 107.690 support zone.
GBPUSD (1.468): GBPUSD is likely to continue to the upside with the bullish flag pattern coming off the inverse head and shoulders pattern. Minor resistance at 1.4676 needs to be cleared however for a move towards 1.48 and eventually to 1.4934. Failure to break above the minor resistance could keep GBPUSD trading flat above 1.45512 – 1.447 support level.
USDCAD (1.3025): USDCAD has pulled back modestly to test the 1.308 – 1.3138 resistance level. A bearish close today could confirm a move to the downside which could see USDCAD test 1.2865 support to the downside. For the moment, the declines in USDCAD is likely to be limited as price action is starting to show signs of a near-term bullish trend taking place. Below 1.2865, the next main support comes in at 1.26. However, the daily price action is showing signs of a possible bullish cup and handle pattern in the making which could be validated if USDCAD retraces not more than 1.270 – 1.275.
USDCHF (0.9921): USDCHF is in the resistance level of 0.9928 – 0.9848 currently and prices could see a near-term decline towards 0.97740 which was previously a resistance level that was broken. A decline to 0.9774 could mark a retest of the broken resistance level for support ahead of further upside in prices. The upside in USDCHF is quite clear and following a dip to 0.9774 a near-term rally could see USDCHF target parity.
