EUR/USD â�,�“ The correction from 1.2970 is picking up steam as Fridayâ�,��"�s bounce rallied to the 50% fibo of 1.2872-1.2691 before being turned away.  Bears have tested the psychological 1.2700 figure - supported by the 20 day SMA and 23.6% fibo of 1.1825-1.2970 at 1.2700 â�,�“ but have failed to sustain a break below.  Fibonacci extensions of 138.2% and 161.8% of 1.2970-1.2691 lead to 1.2500 and 1.2434.  Also of note is the 5/4 low at 1.2570.  A return to strength within the corrective channel encounters Thursdayâ�,��"�s high at 1.2872.  Declining daily oscillators continue to favor shorts.

USD/JPY â�,�“ USD/JPY trades in an extended 3rd wave, having rallied to the 38.2% fibo of 118.86-108.96 at 112.73.  The pair also has also shot past the 20 day SMA at 112.20, which becomes immediate support.  Resistance rests at the 1/12 low of 113.41 as well as the 50% fibo of 118.86-108.96 at 113.91.  Weakness contends with support from the 23.6% and 38.2% fibos of 108.96-112.93 at 112.00 and 111.41.  Daily oscillators are bullish as CCI > 0 and momentum > 0.

GBP/USD â�,�“ Fridayâ�,��"�s bearish engulfing pattern on the daily  provides scope to a continued correction of the uptrend.  The decline from 1.9024 to 1.8631 has taken the form of 3 waves in an A-B-C zigzag pattern.  An extension of the current correction could see the pair test the 23.6% fibo of 1.7251-1.9024 at 1.8606 followed by the 20 day SMA at 1.8537.  The 38.2% fibo of 1.9024-1.8631at 1.8780 is resistance going forward and a break above gives scope to a rally to trendline resistance / 61.8% of 1.9024-1.8631 at 1.8873.

USD/CHF â�,�“ USD/CHF continues to mirror EUR/USD.  After bouncing off of the lower trendline near 1.2050, the pair has made a rather impulsive move to 1.2240 before falling back from the upper resisting trendline.  With the channel sloping up, support is at the lower trendline now near 1.2110 or so.  A break above the channel near 1.2275 exposes the 5/11 high at 1.2304.  Support is at the 38.2% and 50% fibos of 1.1918 and 1.2193 at 1.2088 and 1.2056 in the event that the pair breaks down and heads lower.  Oscillators are bullish on the daily as MACD slopes up and RSI rises from below 30.

USD/CAD â�,�“ We mentioned last week that â�,��"That break above bolsters the bullish bias and gives scope to a test of the 38.2% fibo of 1.1771-1.0969 at 1.1274â�,�.  USD/CAD rallied and tested that area, reaching 1.1272 before falling back and making a doji on the daily.   The hourly chart shows that the correction has taken the form of 3 waves and that the 3rd can be broken into 5 waves.  Correction often take this form or count of 3-3-5.  This would be suggestive of a reversion to weakness.  Immediate resistance comes in at 1.1272 (Fridayâ�,��"�s high).  A break above exposes the 50% fibo of 1.1771-1.0970 at 1.1368.

AUD/USD â�,�“ AUD/USD continues to fall but has found support in the area bound by the 200 day SMA / 38.2% fibo of .7014-.7791 at .7463/93.  The hourly chart shows a corrective pattern similar to that of USD/CAD (but the inverse of course).  Slight divergence with RSI along with the pair trading at trendline support (and support mentioned above) suggest that the corrective move may be coming to an end for the time being.  However, daily oscillators favor shorts as CCI broke below 0 for the first time since 4/4 when the pair was closed at .7202.

NZD/USD â�,�“ Very similar to the Aussie, Kiwi has weakened significantly and now trades just south of the 61.8% fibo of .5991-.6443 at .6163.  The head and shoulders reversal pattern has played out and the next support area is the 78.6% fibo of the rally from .5991 at .6087.  A break above the left shoulder high at .6372 would decrease probability of this reversal to the downside playing out.  Resistance is stacked between .6266 and .6330 as suggested by chart congestion on intraday charts.

Jamie Saettele is a Technical Currency Analyst for FXCM.