Quiet before the storm, is what's going on in the market, as majors remain trading in tight ranges that keep on reducing day after day; things like this usually mean a final explosive reaction, that in this case, seems to be very close as mayor figures are close to be broken in a couple of the most traded pairs:
From a technical perspective, Euro/Dollar has been in a clear descendant downtrend channel since past December, with the roof for today around 1.2860/70 zone that contains the upside; at the same time in daily charts we can appreciate an ascendant trend line, around 1.2730 that the pair already tested several times these last days. One way or the other, a mayor break is underway: under 1.2700, the pair will be addressing to the zone @ 1.2500 while a confirmation above the 1.2870 zone mentioned could trigger some bearish momentum to next important resistance level around 1.3030.
Also Usd/Jpy, remains close to the upper line of a daily triangle, around 92.00, level to watch for further raises in the pair. Above it lays the 92.41 previous week maximum that once broken will mean further movements to the upside in the pair. Regarding Gbp/Jpy key resistance is at 131.35 while for Eur/Jpy break up will be confirmed above the 117.55.
Gbp/Usd remains bearish in bigger charts with some technical divergences that suggest some upside correction in the short term: levels to consider in the next hours will be 1.4320, followed by 1.4386 and above 1.4450 that should contain further raises; under 1.4210 consider a retest of the minimums zones around 1.4135 and under it 1.4060 zone.
Swiss Franc continues tightening its range against dollar: consider 1.1720 and 1.1560 as immediate resistance and support levels that once broken could lead the way for the rest of the day.
With no much chances of a clear recovery in Asian stocks, risk aversion could well continue ruling the market today, but not for long.