EURUSD broke above the falling trend line on 4-hour chart, suggesting that a short term cycle bottom has been formed at 1.4218 level. Range trading between 1.4218 and 1.4500 is expected in a couple of days. Critical resistance is located at 1.4500, as long as this level holds, the rise from 1.4218 could be treated as minor consolidation of downtrend from 1.5144, and another fall towards 1.4000-1.4100 is still possible after consolidation. However, a break above 1.4500 will indicate lengthier consolidation of downtrend is underway and further rally could be seen to 1.4700-1.4750 area.
USDCHF dropped below 1.0387 key support, suggesting that the uptrend from 0.9959 has completed at 1.0507 level already. Deeper decline is still possible later today and next target would be at 1.0250 area. Resistance is now at 1.0400, only rise above this level could take price back to 1.0450 zone.
GBPUSD stays in a falling price channel on 4-hour chart and remains in downtrend from 1.6409. Key resistance is now located at 1.6020, as long as this level holds, we’d expect downtrend to continue and deeper decline to 1.5850 is still possible. However, a break above 1.6020 will indicate that a short term cycle bottom has been formed and the fall from 1.6409 has completed.
AUDUSD broke above the falling price channel on 4-hour chart, suggesting that a short term cycle bottom has been formed at 0.8734 level. Further rally is now in favor and target would be at 0.8970-0.8900 area. However, the rise is more likely consolidation of downtrend from 0.9404, another fall towards 0.8500 is still possible after consolidation.
Being contained by 92.32 (Oct 27 high) resistance, USDJPY pulled back from 91.86 level. The pair might be forming a short term cycle top on 4-hour chart. Another fall towards the lower border of the rising price channel is now in favor. However, a break above 91.86 level could indicate that the uptrend from 87.37 has resumed, then further rally could be seen to re-test 92.32 resistance.
USDCAD’s fall from 1.0745 extended to as low as 1.0448 last week. Deeper decline towards 1.0405 previous low is still in favor and minor consolidation would more likely be seen before breaking below this level. Resistance is located at the upper border of the falling price channel on 4-hour chart, as long as the channel resistance holds, downtrend could be expected to continue.