EUR/USD ââ,¬â€œ The EURUSD has not budged in 24 hours, confining itself to a 40 pip range.  A reverse hammer on the daily at triangle resistance gives scope to a deeper correction of strength.  The pattern on the daily since May is in the shape of a large triangle that requires one more leg down in order to be considered complete.  The 10/31 low at 1.2677 remains initial support with a break lower targeting the 61.8% of 1.2483-1.2797 at 1.2603.

USD/JPY ââ,¬â€œ The USDJPY continues to test the 116.60 figure this morning but support has held.  On the daily, a hammer at the lower Bollinger band (just above the 200 day SMA) indicates strong support at yesterdayââ,¬â"¢s low just above 116.50.  Initial support is at todayââ,¬â"¢s high at 117.36 and a rally above there could give way to the 10/31 high at 118.04.  A break below 116.54 probes the next support zone at the 9/22 low at 116.07. 

GBP/USD ââ,¬â€œ Cable did slide from the 1.9134 high, down to 1.9032 but the pair has since rallied back to test the 1.9100 figure.  1.9100 resistance has held in early morning trading but it takes a break below 1.9032 to suggest that a deeper decline is underway towards the 10/31 low at 1.8955.  Weakness may be foreshadowed by the brief break below the steep short term trendline (which is again just below current price).  A push through 1.9134 and 1.9144 exposes the 4/20/2005 high at 1.9215.

USD/CHF ââ,¬â€œ The USDCHF is testing support at the lower end of a 5 month upward sloping channel.  The actual support line is just below current price near 1.2400 (yesterdayââ,¬â"¢s low at 1.2403) and limits downside risk.  It takes a break above todayââ,¬â"¢s high at 1.2476 to suggest that additional strength is in the works.  If the dollar firms up past 1.2476, then bullish targets would be the 10/31 high at 1.2528 and the 61.8% of 1.2769-1.2403 at 1.2630.  A break below the aforementioned trendline exposes the 9/25 low at 1.2288.

USD/CAD ââ,¬â€œ The USDCAD remains at resistance from the 10/24 high at 1.1322, which is strengthened by the 61.8% of 1.1413-1.1177, also at 1.1322.  The next bullish target is the 10/17 high at 1.1413.  On the daily, the pair has again broken above the 200 day SMA (1.1293 today) and RSI and CCI have crossed above midpoints of 50 and 0.  Initial support on a pullback is former resistance (now support) at the 10/1 high at 1.1286.  A triangle is evident on the daily and a rally to the upper end of the triangle just below the mentioned 1.1413 would complete the 5 wave triangle.  Weââ,¬â"¢ll discuss the implications of this as the pattern unfolds. 

AUD/USD ââ,¬â€œ The AUDUSD did close higher yesterday and therefore completed a string of 7 consecutive days of gains.  This is very rare.  In fact, 7 consecutive up days has occurred 14 times in the last 10 years on 6 separate occasions (going back to November 1996).  Two days in a row is considered one occurrence.  The last two instances have marked significant tops.  The daily chart below shows all 7 (including this past) instances.  RSI remains overbought at above 70 on the daily.  

NZD/USD ââ,¬â€œ Kiwi has also rallied ââ,¬â€œ pushing above the 9/26 high at .6721 and opening up the door for more gains.  However, an aggressive bullish stance seems rather dangerous at the current juncture due to overbought short term oscillators and divergent daily oscillators.  A drop below .6692 would begin to suggest that the pair was turning lower ââ,¬â€œ if even for just a correction.  The next bullish target would be the 2/10 high at .6835.

Jamie Saettele is a Technical Currency Analyst for FXCM.