Being contained by the falling trend line on 4-hour chart, EURUSD drops from 1.4194 level. However, sideways movement could still be seen later today and one more bounce towards1.4250 resistance is still possible. Initial support is at 1.4029, a breakdown below this level could indicate that the downtrend from 1.4579 has resumed, then deeper decline could be seen to 1.3800 area.
AUDUSD’s downtrend extended further to as low as 0.8938. Now the price action from 0.8982 is more likely consolidation of downtrend. Bounce to 0.9100 area to reach next cycle top on 4-hour chart is expected later today and another fall towards 0.8800 is possible after consolidation.
No changed in our view, USDCHF remains in uptrend from 1.0132 and the fall from 1.0495 is treated as consolidation of uptrend. Range trading between 1.0367 and 1.0507 is still possible in a couple of days. Support remains at the rising trend line on 4-hour chart and another strong support is located at 1.0350 area.
GBPUSD’s bounce from 1.6078 reached 1.6267 level only, and the subsequent pullback suggested another fall towards 1.5829 previous low. However, a break below 1.6078 is needed to confirm the resumption of downtrend. Key resistance is now at 1.6267, above this level will signal another rally towards 1.6500 area.
USDCAD runs in a narrow rising channel on 4-hour chart and continues its uptrend from 1.0224. Further rally is still possible later today as long as the channel support holds. However, a clear break below the lower border of the price channel will indicate that a short term cycle top has been formed, then consolidation of uptrend could be seen.
USDJPY remains in downtrend from 91.87. Deeper decline is still possible later today and next target would be at 88.50-89.00 area. Resistance is located at the falling trend line from 93.75 to 91.87, only rise above the trend line resistance could indicate that the fall from 93.75 has completed.