EUR/USD ââ,¬â€œ The EURUSD has retraced a portion of the impulsive rally from that took place last week.  Price has slipped below 1.2700 and scope remains for a test of support at the confluence of the 38.2% of 1.2524-1.2750 / 10/27 low at 1.2662/64.  Bolstering the bullish picture is the positive 10, 20 day SMA cross yesterday.  The next bullish target past 1.2750 is the 9/22 high at 1.2829.

USD/JPY ââ,¬â€œ The USDJPY has rallied to initial resistance, just below the 38.2% of 119.65-117.12 at 118.08.  Focus has been on the former 5 month supporting trendline and we have maintained that a bearish stance is warranted following a break of that line.  With the pair rallying back to test the other side of the line as resistance near the psychological 118 figure, upside risk is limited.  It takes a rally above 119.65 to negate the bearish implications from the impulsive decline.

GBP/USD ââ,¬â€œ Cable has come off the 1.9041 high a bit and support at 1.8950 has held.  As we focused on yesterday, 3 month trendline resistance protects bears but a break above exposes the 8/8 high at 1.9144.  Hourly RSI has slipped below 50, indicating that short term momentum is down and that a deeper correction of strength towards the 38.2% of 1.8672-1.9041 at 1.8900 is possible.       

USD/CHF ââ,¬â€œ The USDCHF completed a 5-wave bearish sequence from 1.2703 yesterday at 1.2467 which has given way to a correction higher above 1.2500.  Yesterdayââ,¬â"¢s doji candle on the daily gives scope to a reversal but trendline support is not until 1.2390.  Continued strength targets the 10/27 high at 1.2570, resistance that is reinforced by the 38.2% of 1.2703-1.2467 at 1.2557.

USD/CAD ââ,¬â€œ The USDCAD has rallied through the short term resisting trendline that we focused on yesterday to the upper end of its recent 1.1177-1.1322 range.  Immediate upside potential may be limited as 60 minute RSI is declining from above 70.  A break above todayââ,¬â"¢s high at 1.1284 targets the 10/24 high at 1.1322, which is strengthened by the 61.8% of 1.1413-1.1177, also at 1.1322.  A decline from current price encounters short term Fibonacci support from the 1.1177-1.1284 rally beginning at 1.1243 and extending to 1.1200.

AUD/USD ââ,¬â€œ Resistance at .7700 has held as the last two daysââ,¬â"¢ highs have been .7701 and .7699 (today).  The 5 month resisting trendline is still intact.  Daily CCI remains 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 remains resistance.

NZD/USD ââ,¬â€œ Kiwi is just below the high side of a shorter term triangle.  The resisting line from the triangle is at about .6678 and provides resistance prior to the 10/19 and 9/26 highs at .6692 and .6721.  The presence of the triangle limits upside risk and initial support is at the 10/30 low at .6604.