EUR/USD - We mentioned yesterday that "Bullish divergence with momentum oscillators suggest that a continued bounce off of yesterday's low is a possibility" but this move off of the 1.2500 handle is much more than a "bounce".  There is a downward channel forming from the 1.2976 high and this could be the beginning of a move to take the euro to the upper end of this channel near 1.2775.  The confluence of the 61.8% fibo of 1.2976-1.2457 / trendline from 1.2976 intersects on July 28th.  This also happens to be the 78.6% fibo of 1.2859-1.2456.  Short term support is at Fibonacci levels of 1.2456-1.2618 at 1.2556 (38.2% as well as 7/18 high), 1.2537 (50%), and 1.2518 (61.8%).

USD/JPY - USD/JPY reversed just before the 118.00 figure and made an outside day in the process.  Yesterday's candle at the upper Bollinger band on the daily could trigger a 3 wave correction of the rally from108.96-117.87, ultimately taking the pair lower to a confluence of fibo supports - notably the combination of the 23.6% of 108.96-117.88 / 50% of 113.43-117.88 at 115.66/79.  A push lower would then target the confluence of the 38.2% of 108.96-117.88 / 78.6% of 113.43-117.88 at 114.39/48.  The pair could bounce higher in the near term as USD/JPY currently tests support at the 6/27 high of 116.67.  Resistance is at the 38.2% of 117.88-116.54 at 117.04.

GBP/USD - From yesterday "The decline from 1.8328 has been choppy and another leg up would complete a 3 wave correction of the recent decline to 1.8176.  The confluence of the 61.8% fibo of 1.8539-.8176 / point where wave 3 of the correction = wave 1 (1.8234 + (1.8328-1.8176) at 1.8386/1.8400."  Of course, Cable blew right by 1.8400 and thus we must reconsider our position.  We'll look at where GBP/USD has been to see where GBP/USD may be going.  The decline from 1.9025 to 1.8090 appears top be in a full 5 waves and price action from 1.8090 to yesterday has completed two corrective waves of the 5 wave downtrend.  Thus, this rally from 1.8176 is the third corrective wave.  The personality of the rally from 1.8176 fits with the idea that the end of corrections tend to be impulse moves.  The first target for the end of this rally would be where the rally from 1.8176 equals the rally from 1.8090-1.8539 (449 pips) - which would be (1.8176 + .0449 = 1.8625).  This is reinforced by the 61.8% fibo of 1.9025-1.8090 at 1.8666.  The pair is overbought on the hourly, so look for support near the 7/17 high at 1.8394.

USD/CHF - As the euro weakens and strengthens so too does the Swiss Franc.  USD/CHF has formed a supporting trendline with the 5/15, 6/5, and 7/7 lows.  This trendline intersects with the 38.2% fibo of 1.1919-1.2595 at 1.2337, which is just below support from the 7/14 high at 1.2377.  The pair has stabilized after challenging 1.2450 but there is room for additional strength to the 38.2% fibo of 1.2595-1.2446 at 1.2502.  This would then open up the door for another leg down that would be similar to the decline from 1.2595.

USD/CAD - USD/CAD is little changed as the pair continues to digest gains following the break above the ascending triangle last week. The correction could see the USD/CAD heading back towards support at the 7/18 1.1304 low or 1.1261, the 38.2% fibo of 1.1039-1.1398.  The larger bullish picture would be muddled only by a break below 1.1039.  Prices above 1.1039 keep intact the series of higher lows on the daily.

AUD/USD - AUD/USD reversed course at the confluence of the 20 day / 200 day SMA at the .7400 figure yesterday.  The pair has barely broken above a short term resisting trendline from the .7565 high on 7/13.  Like the other pairs, AUD/USD has stabilized following the impulsive move higher but scope does remain for a deeper correction, potentially to the 38.2% fibo of .7403-.7512 at .7470.  This is also former intraday support.  The long wick on the daily candle is bullish and a continuation of the move higher challenges the 7/13 high at .7565.

NZD/USD - Kiwi has come off of yesterday's high at .6254 much more than the other majors but the pair still holds above a supporting trendline from the .5927 low.  Current price is more or less right at that line, which needs to hold in order to keep the near term bias bullish.  As such, risk to the downside is limited at current price.  A break below the line could see support from yesterday's low at .6164.  A break above the 61.8% fibo of .6443-.5927 at .6245 would bolster bullish prospects.

Jamie Saettele is a Technical Currency Analyst for FXCM.