Originally published by AxiTrader
EUR/USD is starting to look oversold on the daily chart, and 1.0850 has proven to be a decent support level so far. While the technical outlook remains bearish and selling rallies the preferred strategy for now, a retracement after this sharp move seems likely. Expect decent resistance at 1.0950/55 and the post-ECB high at 1.1038. To the downside, the weekly chart shows that key support lies now at 1.0825, 1.0710 and 1.0520.
USD/JPY is still bid, but has been consolidating in the past few trading days. Immediate resistance is seen at 104.638, but the next major obstacle will be 105.50/60, which acted as key support/resistance area many times before. A break above that area would suggest that we will very likely see an extension of the rally towards 107.50.
AUD/USD failed once again above 0.77, but it doesn't really want to go lower either. For now, playing the range seems the most appropriate strategy with 0.7730-50 and 0.7505-30 the key areas to watch. For techs to turn bearish, it would take a clear break sub-0.75, and that would then pave the way for a move towards 0.73.
NZD/USD was clearly rejected off 0.7250 resistance and continues to trade in a descending channel. It broke below the 0.7130 support level today, and looks rather weak. Further losses seem likely, with 0.7034 the next bear target.
The USD/CAD rally is impressive, and it isn't showing any signs of exhaustion yet. The next significant resistance level now lies around 1.3570, which is the 50 % Fibo of the January-May decline. To the downside, immediate support is seen at 1.3312, followed by the key 1.3225 level.
EUR/JPY is trading within a descending channel pattern and as EUR/USD looks like it may bounce, while USD/JPY remains very well bid, expect another test of the upper line soon. Overall, the technical outlook remains bearish and selling rallies is the preferred strategy for now, with the key levels to watch 114.50 and 115.00-20.
