EUR/USD â�,�“ The euro gave back a healthy portion of its recent gains yesterday pulling back from its upper Bollinger band on the daily and spending some time trading below the 1.2300 figure.  Some pullback was expected in the short-term as the pair had gained nearly 300 pips in the previous 3 days.  However, evidence points that the next move is up.  The high two days ago was rejected at an upward sloping resistance line that forms the top of a channel on the daily beginning in early March.  This channel is forming after a nearly 12 month inverse head and shoulders reversal pattern.  Most importantly though is the fact the EUR/USD continues to break important resistance levels, such as the 3/17 high of 1.2207 and 4/6 high of 1.2331, (although we are currently south of there at the moment), registering 2006 highs in the process.  Yesterdayâ�,��"�s decline likely garnered the attention of short term momentum players that shorted the pair, which gives scope to a short squeeze as well.  Of course, a failure of the presented hypothesis calls for a continuation of yesterdayâ�,��"�s decline back towards the 1.2200 handle.

USD/JPY â�,�“ The greenback continues to fight off the Yen, holding its long term supporting trendline originating in May 2005.  As a result, the consolidation that began in early February persists and the possibility of an upside break from the ascending triangle remains.  Key levels remain the long term supporting trendline and the flat resisting line from the ascending triangle near the 4/11 high of 118.87.  The ability of the pair to hold the supporting trendline certainly lends a bullish appearance to the chart.  Conditions remain range bound until a daily close below/above one of these levels.

GBP/USD â�,�“ Buyers were humbled yesterday after the impressive rally from 1.7400 through 1.7900 quickly caught bulls in a state of euphoria.  Like EUR/USD though, GBP/USD looks set to continue its winning ways,  at least in the short term as hourly charts and > show a triple bottom along with oscillatorsâ�,��"� positive divergence.  The test to the upside for shorter term traders is a reaction high from yesterday / 50% fibo of 1.7934-1.7750 at 1.7839/42.  Those looking a bit longer term look for a test of the 4/19 high / double top with the 1/25 high at 1.7934.  However, buyers beware of the bearish engulfing pattern on the daily and its bearish implications.  A break below tonightâ�,��"�s 1.7749 Tokyo low exposes the 50% fibo of 1.7483-1.7934 at 1.7709.

USD/CHF â�,�“ USD/CHF reclaimed losses from Monday and Tuesday, even having spent some time trading above 1.2800.  The hourly chart looks like an inverse of the GBP/USD chart due to the short term triple top (at 1.2815) and negative divergence with oscillators and price.  Bolstering bearishness is the 10 day SMA cross below the 200 day SMA cross.  The 10 day did spend time below the 200 day from 1/26-2/3 and the signal proved false but two instances ago the signal was very powerful indeed.  The 10 day crossed below the 200 day on 9/30/2004 at 1.2588 and the pair fell 1,200 pips in 3 months.  Daily oscillators are mixed with RSI still sloping down and below 50 contradicted by a positive 14 day stochastic cross below 20.  However, the slow D line would need to close above 20 to confirm the bullish cross.  The 4/19 high at 1.2759 remains an obstacle for bears just as the 4/6 low at 1.2824 remains one for bulls.

USD/CAD â�,�“ USD/CAD was able to hold above 1.1350 and below 1.1400, consolidating recent losses.  With daily moving averages and daily oscillators still sloping down, the picture is still bearish with no obvious support until the 3/2 low at 1.1297.   Hourly oscillators are again bearish and sloping down after the digestion of recent weakness.  The correction from todayâ�,��"�s 1.1349 low has been rather pathetic, suggesting a lack of willing buyers.  As mentioned, 1.1297 remains the target / support with a break exposing the November 1991 low at 1.1189.

AUD/USD â�,�“ As mentioned yesterday, â�,��"The proximity of the 200 day SMA connotes that the risk to the pair is greater to the downside than the upside.â�,�  This proved true as the pair made it seven pips beyond the 200 day SMA before a fast and furious fall to the 50% fibo of .7237-.7481 at .7359.  The 200 day remains initial resistance at .7463 with additional resistance coming in at the 61.8% fibo of .7761-.7013 at .7476.  The trendline stemming from March 2005 rests near 1.7576 and strengthens resistance at that level.  In the event that buyers can push through the ceiling made by the 3/2, 3/3, and 4/19 highs at .7481/85, the pair targets the confluence of the 1/31, 2/1 highs / 76.4% fibo of .7761-.7013 at .7585.  A very short term head and shoulders on the hourly (more obvious on 15 minute chart though) surely threatens bulls.  Yesterdayâ�,��"�s low at .7356 is initial support with a break below targeting the 61.8% fibo of .7237-.7481 at .7330.

NZD/USD â�,�“ The Kiwi rally came to an end, at least in the interim, at the 38.2% fibo of .6916-.5991 at .6345.  The correction has been healthy with the pair falling over 100 pips from the .6356 high to the 38.2% fibo of .6060-.6356 at .6242.  The hourly oscillators are back to favoring bulls as evidenced by the recent positive MACD cross and strengthening RSI.  The pair has stalled at the 50% fibo of .6357-.6239 at .6298 but a break above targets yesterdayâ�,��"�s intraday reaction high at .6326 and eventually the high on 4/19 at .6357.

Jamie Saettele is a Technical Currency Analyst for FXCM.