EUR/USD â�,�“ The EURUSD pushed through to 1.2750 on Friday to Finish October on a positive note.  There is a well constructed 5 wave rally from 1.2524 to 1.2750 and probability thus favors a correction lower with initial Fibo support at the 38.2% of 1.2524-1.2750 at 1.2664.  240 minute RSI is still overbought and a decline below 70 would lend more confidence to the corrective scenario.  A push above 1.2750 exposes the 10/3 high at 1.2765.

USD/JPY â�,�“ The JPY gained significantly last week to below the 118.00 figure.  The pair has broken below a confluence of supporting trendlines (5 month and 3 month), which turns the larger picture bearish.  Daily oscillators are bearish as well with 21 day momentum just crossing below 0 on Friday.  Intraday (60 and 240 minute) oscillators are extremely oversold and favor a rally attempt.  Initial resistance is at the 38.2% of 119.65-117.12 at 118.08.  A break below 117.12 exposes the next bearish target at the 9/22 low at 116.07.

GBP/USD â�,�“ Cable has soared past 1.9000 and is testing 3 month trendline resistance at 1.9020.  The sequence of lower highs since August is in jeopardy â�,�“ 1.9072 must hold as resistance in order to keep the sequence intact.  21 day CCI is extreme at above 100.  Crosses below 100 often signal reversals but the indicator can remains above 100 for some time (evidence is the last two instances).  Initial support is at todayâ�,��"�s low at 1.8952.        

USD/CHF â�,�“ We remarked Friday that â�,��"The USDCHF has declined to the 50% of 1.2288-1.2769 at 1.2529 (low at 1.2518) but the recent rally attempt off of 1.2518 has been thwarted twice in the last 8 hours at 1.2563 and 1.2570.  As such, scope remains for a test of the 61.8% fibo at 1.2472.â�,�  The pair is testing 1.2472 right now in what may be a 5th wave down.  A dip below 1.2472 would possible complete a 5 wave bearish sequence, which would then give way to a corrective move higher towards resistance at todayâ�,��"�s high (1.2505).

USD/CAD â�,�“ The USDCAD is testing the bottom of the 1.1200-1.1320 range.  Price holding below a short term resisting trendline from 1.1413 keeps the bias bearish.  Initial resistance is at Fridayâ�,��"�s high at 1.1260.  A rally through gives scope to a test of the 10/24 high at 1.1322.  A drop below Fridayâ�,��"�s low at 1.1177 may see offers hit until the 78.6% of 1.1085-1.1413 at 1.1155 (10/2 low at 1.1144 reinforces support there).

AUD/USD â�,�“ The AUDUSD has been unable to break above the .7700 figure as strength was rejected at a 5 month resisting trendline Friday and today.  Daily CCI is extreme at above 100 but it takes a cross below 100 to signal a reversal opportunity.  From a pure price perspective, a drop below the 10/23 high at.7613 would begin to destroy the bullish construction.  .7721 is resistance.

NZD/USD â�,�“ A support zone from .6486-.6545 has held and Kiwi has rallied through Fridayâ�,��"�s high at .6625.  The break below the 4 month trendline was a false bearish signal.  Daily oscillators have moved back above midpoints and are bullish again.  It appears that the pair is tracing out a triangle from the 9/26 high at .6721.  Triangle resistance is at .6680.