EUR/USD â�,�“ The EURUSD nearly made it to 1.3300 yesterday but this morningâ�,��"�s decline from 1.3284 during the 4:00 hour in NY is convincing and suggests a deeper corrective move is in the works.  Price is just above a short term trendline and a decline through there opens up the door for a test of the 11/29 low at 1.3132.  Also, we have focused on our measured objective at 1.3280, which is where larger wave 5 (daily chart) would equal 61.8% of waves 1 through 3 at 1.3280.  Todayâ�,��"�s rejection at 1.3284 supports the opinion that at least an interim top is in place at 1.3284.

USD/JPY â�,�“ The USDJPY continues to range within what looks like a flag to consolidate the decline from 118.46.  Price is at the upper end of the consolidation pattern â�,�“ which limits upside risk.  Additionally, a small 5 wave decline from 116.58 places this rally from 115.48 as corrective.  Price must remain below 116.58 in order to keep the bearish structure intact.  What could follow is a 3rd wave decline that would break below 115.39 and shift focus to the 8/10 low at 114.65.

GBP/USD â�,�“ We wrote yesterday in a separate report that â�,��"the preferred wave count places GBPUSD in the 5th wave of a 5 wave sequence from the 11/28/2005 low (almost one year ago exactly) that started at 1.7046.  The 5th wave itself began on 10/11/2006 at 1.8515.  A 5th wave consists of 5 waves and the current 5th wave is in its 3rd wave.  Thus, the rally from 1.8515 has two more waves left (besides the end of this 3rd wave) - a corrective 4th wave and a 5th wave rally...but how much higher? Only a drop below 1.9433 indicates that a 4th wave correction is beginning, in which case support is at the prior 4th wave extreme of 1.9304.  A final 5th wave advance could then challenge the point where wave 5 (from 1.8515) equals 61.8% of waves 1 through 3 (1.7046 to 1.9025) - which is at 1.9738.  Reinforcing the idea of a measured objective at 1.9738 (or about) is the fact that the 138.2% extension of 1.8515 to 1.9178 from 1.8834 is at 1.9750.  Thus 1.9738 to 1.9750 could be the end of a 5 wave sequence from 1.7046.â�,�  Without approaching 1.9433 â�,�“ Cable rallied to 1.9747 this morning, this satisfying our measured objective.  The immediate sell-off suggests at least a near term top.

USD/CHF â�,�“ The USDCHF bids were hit at the weekly pivot S1 this morning and price has impulsively rallied to the 1.2000 figure.  The hourly chart shows a textbook 5 waves down from 1.2539 which increases the probability of a move higher to challenge former resistance from the 11/29 high at 1.2122.  The bigger picture (daily) suggests that a corrective move higher will be followed by a 5th wave down below 1.1946.

USD/CAD â�,�“ The larger uptrend remains in place above the support line drawn off of the 9/1, 9/28 and 10/30 lows.  Additionally, the correction of strength to 1.1371 was choppy and corrective in what looked like a second wave.  A rally through 1.1440 would bolster the bullish stance against 1.1371 and shift focus to the 11/21 high at 1.1493.  A decline below 1.1371 warrants a neutral stance and would warn of a deeper correction towards the 61.8% fibo of 1.1285-1.1440 at 1.1345.

AUD/USD â�,�“ The Aussie is strong as the currency continues its assault on the US Dollar.  The AUDUSD is at its highest since March of 2005.  The large triangle on the daily chart places triangle resistance near .7970, just below the 3/8/2005 high at .7988.  Bulls seem intent on testing the top of this triangle but risk of a temporary setback is high as short term oscillators exhibit bearish divergence at overbought levels.  Initial support in the event of a setback is at the 11/29 low at .7818.

NZD/USD â�,�“ The Kiwi rallied dangerously close to the 61.8% of .7461-.5927 at .6875 both yesterday and today.  Daily RSI suggest that there may be additional upside risk as studies are increasing steadily but not yet overbought.  The hourly favors a near term decline as the rally has stalled at .6840 and the recent high is accompanied with bearish divergence (hourly oscillators).  Initial support is at the 11/30 low at .6775.

Jamie Saettele is a Technical Currency Analyst for FXCM.