EUR/USD ââ,¬â€œ The rally to 1.2976 gave way to a 3 wave correction that has found support at the 50% fibo of 1.2795-1.2976 at 1.2885.  A continued bounce from fibo support targets yesterdayââ,¬â"¢s high at 1.2976.  However, that high formed a double top with the 5/15 high, massive negative divergence with oscillators on the daily, and yesterdayââ,¬â"¢s candle resulted in a bearish reverse hammer at the upper Bollinger band.  This evidence points to a continued correction of the 1.1825-1.2971 rally, possibly to the 5/4 low of 1.2570 or the 38.2% fibo of 1.1825-1.2971 at 1.2533.

USD/JPY ââ,¬â€œ Range conditions prevail in USD/JPY as the pair traded between the 10 and 20 day SMAââ,¬â"¢s yesterday.  As such, hourly oscillators are the weapon of choice.  Hourly RSI is now sloping down from close to overbought territory and thus offers a cautious short term bearish bias.  However, a break above this eveningââ,¬â"¢s 112.50 high exposes the 6/2 high at 112.93.  The inability of the pair to break below the 38.2% fibo of 108.96-112.86 at 111.45 gives suggests that the larger corrective move from 1.0896 has more upside potential.  Resistance stems from the 6/1 high of 113.37 and the 50% fibo of 118.87-108.96 at 113.93.

GBP/USD ââ,¬â€œ The rally to 1.8879 yesterday was resisted by daily highs from 5/30, 5/31, and 6/2.  These daily highs form a double top on the hourly chart at 1.8868/79, which is initial resistance.  The double top favors additional weakness towards support at the 61.8% fibo of 1.8565-1.8858 at 1.8677.  A supporting trendline from the 5/26 low of 1.8529 comes in near 1.8600.  Wave structure supports a continued correction of the prior bull move to 1.9025.  The rally from 1.8529 to 1.8879 appears to be the second wave of a three wave correction with the third wave ideally breaking below the 5/26 low of 1.8529 and towards the 38.2% fibo of 1.7226-1.9024 at 1.8338.

USD/CHF ââ,¬â€œ USD/CHF trades near the bottom of a well defined range between 1.2015 (5/22 low, 6/5 low) and 1.2300 (5/11 high, 5/26 high, 6/1 high).  With the proximity of mentioned support and hourly RSI rising from below 30, risk is limited to the downside.  However, a break below yesterdayââ,¬â"¢s 1.2014 low opens up the door for an assault on the 5/15 low at 1.1919.

USD/CAD ââ,¬â€œ USD/CAD has rallied well past 1.1000 after the last two daysââ,¬â"¢ lows held at 109.72and 109.76.  Quite clear on a dealer chart is the formation of a head and shoulders continuation pattern although scope remains for continued strength towards the 61.8% fibo of 1.1265-1.0926 at 1.1135 or the 5/15 high at 1.1175.  Strength beyond 1.11758 negates the h&s continuation pattern and its bearish implications.  Favoring bulls is the massive positive divergence with oscillators on the daily after the 1.0927 low on 5/31.  Such a strong signal on the daily chart often leads to a rather material move.  Keep in mind that a h&s continuation pattern would not be completed until a break below the neckline (near 1.0925 at the moment), thus the positive divergence proposes a cautiously bullish stance.

AUD/USD ââ,¬â€œ AUD/USD continues to trade near support from confluence of the 200 day SMA / 6/1 and 6/2 lows at .7440/62.  Todayââ,¬â"¢s low of .7439 pierced the 6/1 and 6/2 lows of .7440/44 and price subsequently snapped back above .7450 ââ,¬â€œ leaving positive divergence with oscillators on the hourly and thus the possibility for gains in the short term.  However, it appears as though AUD/USD is entering the third wave of the overall correction from the rise to .7791 and may eventually test the 61.8% fibo of .7312 in the coming weeks.  Daily oscillators favor this view as MACD has just turned negative, RSI < 50, and CCI < 0.

NZD/USD ââ,¬â€œ Kiwi trades within a range bound by the 6/5 high of .6353 and the 6/2 low of .6230.  Volatility continues to contract as the pair digests  the bear wave  to .5991 that ended in late March.  The consolidation pattern takes the form of a triangle and a break below exposes the 5/22 low of .6142.  Strength finds resistance at the upper end of the triangle near .6390.

Jamie Saettele is a Technical Currency Analyst for FXCM.