EURUSD breaks below 1.2601 key support, suggesting that a short term cycle top has been formed at 1.2754 level on 4-hour chart. Consolidation in a range between 1.2456 and 1.2754 is expected in a couple of days, and deeper decline to 1.2400 would more likely be seen after consolidation. Initial resistance is at 1.2754, only rise above this level will signal further rally to test 1.2991 previous high resistance.
Being contained by the medium term key support at 1.1459, USDCHF rebounds from 1.1484 level, suggesting a short term cycle bottom is being formed and consolidation between 1.1459 and 1.1700 is expected in a couple of days. Deeper decline would more likely be seen after consolidation, and a break below 1.1459 level will indicate that the rise from 1.0366 (Dec 29, 2008 low) has completed and the following downtrend could bring price to 1.1000 zone.
USDJPY stays in the trading range between 96.56 and 99.67. Moving sideways in this range is expected in a couple of days. However, the price action from 98.70 is more likely consolidation of the medium term uptrend from 87.12 (Jan 21 low), further rise to 102.00 zone is still possible after consolidation, and a break above 99.67 previous high will signal resumption of the uptrend.
USDCAD breaks above 1.2973 previous high resistance and reaches as high as 1.3063, suggesting that a short term cycle bottom has been formed at 1.2709 level on 4-hour chart. Further rally could be seen to 1.3300 zone in next several days. Near term support is at 1.2900 and key support is located at 1.2709, only fall below this level will indicate that the rise from 1.2024 has completed.
GBPUSD breaks below 1.3957 key support, signifying that a short term cycle top has been formed at 1.4305 level on 4-hour chart. Deeper decline is now in favor and the next target would be at 1.3600 zone. Near term resistance is located at 1.3950, as long as this level holds, we’d expect the downtrend from 1.4305 to continue.
No changed in our view, AUDUSD is in sideways consolidation between 0.6284 and 0.6553. As long as 0.6553 resistance holds, we’d expect downtrend to resume and deeper decline would more likely be seen to 0.6100-50 area after consolidation. However, above 0.6553 resistance will indicate that the fall from 0.6849 has completed at 0.6284 level.