Technical Analysis for EURUSD, GBPUSD, AUDUSD, NZDUSD, USDJPY, USDCAD,

• “BIG picture, monthly RSI has broken out of a triangle pattern. Sometimes, a pattern breakout in momentum (or OBV) precedes the breakout in price. The development’s implications are obviously significant.”
• EURUSD has now taken out the 2012 and 2010 lows. Only the 2005 low remains before ‘free-fall’ territory towards the 61.8% retracement of the rally from the 2000 low near 1.12. Given insanely one sided sentiment for an extended period of time however, this first attempt at the 2005 low may fail and give way to a much needed countertrend move.

GBPUSD W1

• “A period of congestion may be in order as price has bounced from near the 50% retracement of the advance from the 2013 low but the drop under 1.6050 produces a pivot high on 9/19 and allows one to draw a downward sloping channel.”
• GBPUSD is at a major level in 1.51. Failure to find support here would open up the 2013 low at 1.4812. The gap at 1.5325 could still be of the breakaway variety as the rally stalled prior to the level.

AUDUSD W1

• “AUDUSD was unable to hold a long term parallel. The risk is for lower prices with the May 2010 low at .8067 and the 2005 high at .7986 of interest as supports”.
• “AUDUSD dipped as low as .8031, which is within the .7927-.8067 long term support zone (2010 low to 50% of rally from 2001 low with 2004 and 2005 lows in between). A small range weekly key reversal is present, which may set the stage for a recovery.”

NZDUSD W1

• NZDUSD is bouncing from the October 2009 high but one can’t help but notice that a major double top is possible with a target of .5898. That would trigger on a drop below .7370. Near term, consolidation since September could be taking the form of a triangle or flat.

USDJPY W1

• “USDJPY held up into the New Year and said January decline is underway. A sideways pattern could take hold between roughly 117 and 120.”
• USDJPY dipped under 116 this week but the range described remains intact. Failure to hold range lows could target 110.

USDCAD W1

• “USDCAD has propelled higher and is probably headed into upper parallels. Levels of interest on the upside are 1.1666 (Fibonacci) and 1.1723 (June 2009 high).”