This morning there was a gap down out of the range which could indicate the resumption of selling. The gap was filled but it could still herald further weakness and a break of the 1.0200 lows would probably signal a move down to 1.0130, and a break of 1.0120 would target parity. Some bullish signs [...]

After the heavy sell-off yesterday, eurodollar has bounced off support at 1.2975 and recovered this morning, and it will probably continue a little higher until it reaches the top of the channel at 1.3055, particularly given the bullish convergence with MACD at the lows. Friday’s strong move down, however, could be sign of more weakness [...]

Cable is falling even lower, although it has just reached the level of the monthly pivot at 1.4865 and there is a possibility it could halt and consolidate here – or even temporarily bounce higher. Eventually it will probably sell-off, however, as the down-trend remains strong with the next target is between 1.4500-50. If there [...]

Eurodollar’s strong upswing yesterday has reached resistance at the trend-line for the move down and begun consolidating. It needs to break through this line to establish a bullish reversal and if it moves decisively above 1.3020 then it could provide the signal with a target at 1.3260. This morning we have seen some weakness, however, [...]

The USD/JPY has resumed its up-trend and broken out of the range that it has been consolidating in for the past few weeks. The rally currently looks unstoppable and it will probably continue higher, at least to the monthly pivot at 96.25 but probably higher to the 98.15 target, generated by extrapolating the width of [...]

The aussie has broken out of its down-sloping channel and it will probably rise to the target at 1.0350. It is also possible a head and shoulders bottom has formed with a neckline at 1.0310 which is breached would also be bullish. The short-term down-trend, however, is still dominant and indicates the possibility of a [...]

The EUR/USD pair is recovering this morning after a big sell-off yesterday which brought it back down to the 1.2960 lows. It will probably now rise up to resistance from the top of the range at 1.3070. The downside target from the H&S pattern has almost been met and this enhances the possibility of a [...]

The down-trend is still intact and will probably eventually continue lower. There may be a rebound first, however, since the pair has reached the lower line of its channel today and formed a double bottom reversal pattern. If the neckline is decisively broken at 1.5015 it could lead to an rally to the target at [...]

EUR/USD pair is still recovering but less aggressively than it did yesterday. This morning’s activity has been mixed and it is possible it will continue sideways. If we get a break above the key 1.3100 level then there is a chance of a rally up to the top of the channel at around 1.3140-50. The [...]

The USD/JPY pair is still broadly consolidating within a range. The medium-term trend is up and the consolidation will probably break higher eventually and begin a new leg up. This morning it has risen towards and it will probably continue to the range highs at 94.50, as there are indications of underlying strength. Alternatively a [...]