Being supported by the rising trend line from 87.37 to 88.97, USDJPY rebounded from 91.25, suggesting that a short term cycle bottom has been formed on 4-hour chart. Range trading between 91.25 and 93.21 is expected in a couple of days. As long as 91.25 support holds, the price action from 93.21 is treated as consolidation of uptrend from 84.82 and one more rise towards 94.00-95.00 area is still possible. However, below 91.25 will indicate that lengthier consolidation is underway, then another fall could be seen to 90.50 area.
GBPUSD has formed a short term cycle top at 1.6238 and the fall from 1.6238 is treated as resumption of downtrend from 1.6875 (Nov 16 high). Deeper decline is now in favor and target is at 1.5708 (Oct 13 low). Initial resistance is at 1.6061, as long as this level holds, downtrend from 1.6238 will continue.
AUDUSD continues its bullish movement and the rise from 0.8734 extended to as high as 0.9264 level. Further rally is still possible after a minor consolidation and next target would be at 93.50 area. Support is at the rising trend line on 4-hour chart, only fall below the trend line support could signal completion of uptrend.
As expected, EURUSD continues its upward swing trading within a price channel on 4-hour chart. The price action from 1.4218 is still treated as consolidation of downtrend from 1.5144. One more fall towards 1.4000 is still possible after consolidation.
No changed in our view, USDCHF stays in a falling price channel and remains in downward trend from 1.0507. As long as the channel resistance holds, we’d expect downtrend to continue and deeper decline to 1.0200 is still in favor.
USDCAD’s downtrend extends further to as low as 1.0296. Deeper decline is still in favor and next target would be at 1.0250 area. Resistance is at 1.0365 followed by 1.0424, as long as these levels hold, downtrend from 1.0576 could be expected to continue.