EUR/USD â�,�“ The focus remains on the resisting trendline from the 6/5 high at 1.2976.  Price again tested the line yesterday at 1.2940 and has since slipped to just above the 61.8% fibo of 1.2780-1.2938 at 1.2841.  The Fibonacci level combined with the 8/18 high at 1.2844 form what should be formidable support.  A break below encounters the 78.6% fibo at 1.2815.  The bias is bullish unless 1.2780 is breached.  Yesterdayâ�,��"�s high at 1.2938 is initial resistance.  A daily close above the resisting line from 1.2976 grants confidence to the bullish argument.

USD/JPY â�,�“ The USDJPY has rallied to test a trendline from the 7/19 high at 117.88.  RSI is overbought on the hourly and the pair trades within the resistance zone from the 61.8% and 78.6% fibo levels of 116.74-115.17 between 116.74 and 115.17.  If resistance fails, then 116.74 must hold for the immediate bearish bias to hold.  If weakness does play out, then the 8/17 low at 115.17 is support.

GBP/USD â�,�“ Cable is little changed and continues to trade in the downward sloping channel that begins at 1.9144.  Yesterdayâ�,��"�s rally stalled at the psychological 1.9000 figure and as we mentioned yesterday, â�,��"overbought hourly RSI limits upside potential in the near term.â�,�  RSI has corrected and is near the midpoint 50.  A break above the aforementioned resisting line (see chart below) gives scope to a resumption of strength.

USD/CHF â�,�“ Yesterdayâ�,��"�s analysis remarked that â�,��"the move against the dollar may be nearing its terminus, at least in the near term.  A bounce from current levels would suggest that a triangle is forming (see chart below).â�,�  The bounce did indeed occur and the triangle that appears to be forming is one of the descending variety (bearish).  A continued bounce probes the confluence of the upper end of the triangle / 78.6% fibo of 1.2380-1.2182 at 1.2337.  Only a break below 1.2182 (8/21 low) re-instills confidence in the bearish bias.

USD/CAD â�,�“ USDCAD is little changed from yesterday.  The pair appears to be tracing out the 3rd wave of a correction from 1.1456.  Where might this correction end before buying returns?  The 3rd corrective wave (beginning at 1.1319) would equal the first (1.1456-1.1170) at 1.1033.  This is significant because the 78.6% fibo of 1.0927-1.1456 is at 1.1040 (just 7 pips away).  This fits with the notion that initial moves at turning points are often retraced a large amount before a continuation.  The initial move in this case is 1.0927-1.1456.

AUD/USD â�,�“ As we have focused on in recent commentary, the longer term bias is a bearish one as evidenced by the bearish divergence with oscillators on the daily at recent highs and a resisting trendline from the 3/8 high at .7988.  The near term could see a re-rest of the 61.8% fibo of .7699-.7551 at .7642.  The 78.6% is resistance on a push higher at .7667.  A break below the 8/18 low at .7551 probes the 50% fibo of .7270-.7713 at .7492.

NZD/USD â�,�“ We have concentrated on the possible change in trend in Kiwi in recent days. Evidence includes â�,��"extreme CCI on the daily (above 100) and RSI very near extreme, the likelihood of a sustained rally is not great.  In addition, Thursdayâ�,��"�s inside day at the upper Bollinger band points to a potential change in trend.â�,�  NZDUSD may be in the early stages of weakness as the pair currently trades below support from the 8/18 low at .6367.  On the other hand, this could simply be a correction of the strength to .6439.  RSI is nearing oversold and the pair is trading right at a supporting trendline (see chart below).  Weâ�,��"�ll need to see a break below the supporting trendline on the daily (from the .5927 low) before we have confidence in the downside.  The daily trendline is at .6278 today and increases roughly 10 pips per day.

Jamie Saettele is a Technical Currency Analyst for FXCM.