-EURUSD forming base above 1.2965
-GBPUSD to break through this week too
-AUDUSD above 200 day SMA
-USDJPY tests Fibonacci resistance
-USDCAD looks heavy

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Euro / US Dollar

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The push above channel resistance suggests to me that the EURUSD corrective advance from 1.2510 is not yet complete. In fact, recent developments suggest a rally through 1.3742 and possibly as high as 1.4150-1.4200 (61.8% of decline from 1.4723 and 100% extension of 1.2510-1.3742). Staying above 1.2965 keeps this outlook intact. I'd still like to see the EURUSD drop beneath 1.3190 and test Fibonacci support at 1.3125. A dip to this level would warrant bullish action.

British Pound / US Dollar

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The only statement that I can make with a high degree of certainty is that the rally from 1.35 is a larger 4th wave (corrective) and that it is highly probable that 1.3500 will be broken later this year. BUT, as is the case with the EURUSD, a larger advance seems likely prior to the next leg lower. Staying above 1.4396 keeps bulls in control and Cable on a path towards 1.5728 (200 day SMA near there as well).

Australian Dollar / US Dollar

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The correction from the October low is still underway. The AUDUSD has broken through the 200 day SMA and is at its highest level since early October. The rally from .6953 is wave v of C and an objective is .7630 (which is where wave v of C would equal wave i of C). This is close to the 50% of the decline from .9822.

New Zealand Dollar / US Dollar

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Like the GBPUSD, the NZDUSD is unclear. The head and shoulders ‘look' is still there but the decline from .5987 is in 3 waves, which warns of additional upside potential. Alo, the right shoulder is consuming too much time. Remaining above .5526 keeps the NZDUSD on a path towards higher prices.

US Dollar / Japanese Yen

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The long term trend remains down and I expect a resumption of that trend although there is near term upside potential. There is potential resistance at 99.72 (March 5 and April 17 highs). Until there are short term signs of weakness, it is dangerous to be short the USDJPY.

US Dollar / Canadian Dollar

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A larger USDCAD decline is underway towards 1.1359 and perhaps even lower. Weakness, which is accelerating, strongly suggests that 5 waves from .9055 are complete at 1.3068. 1.1980 is short term resistance.

US Dollar / Swiss Franc

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The USDCHF decline is also likely to extend. 1.0925 is the 61.8% of the advance from 1.0367 and potential support. Staying below 1.1606 keeps the pair on a path lower. Short term resistance is at 1.1450/75.

Jamie Saettele publishes Daily Technicals every weekday morning (930 am EST), COT analysis (published Monday mornings), technical analysis of currency crosses throughout the week (EUR on Tuesday, JPY on Wednesday, GBP on Thursday, AUD on Friday), and the DFX Trend Index every day after the NY close. He is also the author of Sentiment in the Forex Market.

Please send comments about this report to jsaettele@dailyfx.com