EUR/USD ââ,¬â€œ After a brief period of weakness Euro bulls continued to lead the charge as the CCI and RSI turn upwards once again.  The EUR/USD has broken above the 61.8% fibo of the 1.3667-1.1630 move, but is still struggling to close above that level.  This zone should prove to be staunch resistance for the EUR/USD, especially since it is also the confluence of the 2/18/2004 high and 161.8% extension.  However, with 1.30 only an armââ,¬â"¢s length away, we would not be surprised to see traders aim for a test of the psychologically and technically important level. Major support is not until 1.2660, which is the 50% fibo of the 1.3667-1.1630 move followed by 1.2593, the 23.6% fibo of 1.1825-1.2830.  If the EUR/USD manages to close substantially above the 61.8% fibo that it currently finds resistance at, 1.30 would be the first battle zone followed by 1.3185, the 76% fibo of the same move. 

USD/JPY ââ,¬â€œ USD/JPY has not seen a positive close in what would be seven days of losses counting today.  The currency broke below the technically important 110 level and is now trading at the lowest price since 9/12/05.  The downtrend is very strong with ADX still pointing upwards and daily oscillators in grossly oversold territory.  A close below Wednesdayââ,¬â"¢s low of 110.11 exposes the 61.8% fibo retracement of the 101.79-121.36 at 109.27 followed by the 9/5/05 low of 108.75.  Any retracements will be corrective at best and will probably fined resistance at 111.60 which is the 50% fibo of 101.79-121.36

GBP/USD ââ,¬â€œ The British pound continues to soar as it heads towards the psychologically important 1.90 level.  It has been a great week for the currency pair as it closes 400 pips higher.  ADX remains solidly in trending territory and pointing upwards while oscillators also remain in grossly overbought territory.  With prices pushing higher, the first inclination is to look at resistance zones.  1.90 is key psychologically, but technically 1.9075 is the more important level since it represents the May 2005 high hit on 5/5/2005.  Should the GBP/USD fail at the 1.90 level, the first support zone is todayââ,¬â"¢s low of 1.8820, but major support is not until 1.8600, which is the confluence of the 61.8% fibo of 1.9550-1.7048 as well as the first standard deviation Bollinger band.  With the only divergence occurring in CCI, there is a possibility of that the move will pause at 1.90, but given the strength of the recent move it is far from guaranteed.   

USD/CHF ââ,¬â€œ USD/CHF has sold off for the fourth consecutive day and is now trading at the lowest level since 05/11/2005.  With the 100-day SMA crossing the 200-day SMA to the downside, the outlook for USD/CHF remains pretty grim.  ADX is flattening out, but still remains in solidly trending territory.  Hourly charts are also showing a bit of strength given the sharp rally off of todayââ,¬â"¢s 1.1965 low, pointing to a possible pause above the 1.20 level.  If the currency does close above 1.20, we could see a rally back towards the dayââ,¬â"¢s high at 1.2130, which is the confluence of the hourly 34 EMA and first standard deviation Bollinger band.  More significant resistance however does not come until 1.2300, which is the May 8 and May 11th high.  If USD/CHF extends its sell-off however and closes near its low, we could see an extension move first down to todayââ,¬â"¢s low at 1.1965 and then to 1.1775, which is the 76% fibo of 1.1288-1.3285.

Jamie Saettele is a Technical Currency Analyst for FXCM.