EurUsd EURUSD is weighing heavily on 1.3520 support this morning, and the performance of equity markets thus far today suggests we may be in for a move lower. If the 1.3520 support gives way (yesterday's low), we would expect a quick trip to 1.3479 (27 Sep low), and perhaps a return to 1.3364 (26 Sep low). On a deeper sell-off, next levels are eyed at 1.3245 (17 Jan low), and major psychological support 1.3000. In the meantime resistance remains at 1.3690 (28 Sep high), 1.3790-1.3800 (upper edge of 2-week downtrend channel), 1.3799 (21 Sep spike high), and then 1.3937 (9 &15 Sep high).
GbpUsd Yesterday, GBPUSD only managed to nudge 10 pips higher than the peak seen on Tuesday (high yesterday 1.5715), and afterwards the pair quickly collapsed back towards 1.5550 levels. Now, we see a real risk of the bullish bias being swept away by the possibility of a double top pattern becoming active on the hourly chart. The neckline for this pattern is 1.5543 (29 Sep low), so on a break below there we'd go short and aim for a target of 1.5370. Supports are eyed at 1.5433 (26 Sep low), 1.5328 (22 Sep low), 1.5297 (7 Sep low) and 1.5124 (21 Jul low). If the bulls can recover quickly there is still scope for a bigger correction higher, but for that scenario to play out they must prevent the break below 1.5543. Next resistance levels are noted at 1.5715 (yesterday's high), 1.5757 (19 Sep high), 1.5821 (38.2% Fibonacci retracement of the sell-off 1.6618 to 1.5328), 1.5886 (12 Sep high) and 1.5973 (50% Fibonacci level of that same sell-off).
UsdJpy USDJPY managed to spike above the 77.00 range ceiling yesterday afternoon, a move that indicates to us that the bulls are slowly but surely regaining dominance over the bears. A close today above 76.98 (last week's high) would be a strong signal for another move higher; and next topside levels to test will be 77.30-40 (12 Sep US session high & 15 Sep high), 77.86 (9 Aug high), and 78.47 (8 Aug high). First support is still 76.34 (28 Sep low), followed by 76.12 (21-22 Sep lows), and not far behind there is the all-time low 75.96 (set on 19 Aug). Increased warnings from the MoF makes it less likely the pair will be able to challenge 75.00 without some harsh intervention from the central bank.
UsdChf USDCHF has failed to make any new progress on the downside, and after breaking above the 0.8995 level yet again this morning, we are ready to abandon our short positions (entered on the break below 0.8995 on Tuesday), and instead revert to a neutral bias. First resistance is now 0.9058 (27 Sep high), then 0.9182 (22 Sep high), 0.9296 (6 Apr high), 0.9369 (9 Mar high), and 0.9506 (22 Feb high). Supports on the downside lie at 0.8920-30 (27-28 Sep lows), 0.8856 (21 Sep low), 0.8791 (20 Sep low), and 0.8648 (15 Sep low).