EurUsd EURUSD is much higher today after breaking through the prior week's highs of 1.3380-85 yesterday. Thus far we've extended gains to 1.3450 but there's still a lot of space above us before the bulls would need to start worrying about resistance levels. As such we feel it's likely the pair continues to drift higher; but 1.3600 should cap for now as that's where the upper edge of the downtrend channel intersects the 30 Sep high today. If we are wrong, and the bulls manage to break higher, next resistance is eyed at 1.3690 (28 Sep high) and 1.3799 (21 Sep high). For the time being however, we'd look to fade the rally and hope for 1.3550 as the ideal entry level. If the price drops back as we'd expect, watch for support at 1.3242 (yesterday's low), 1.3146 (4 Oct low), 1.3000 (major psychological support), and 1.2962 (12 Jan low).
GbpUsd Some very bullish developments from GBPUSD in the last 24 hours; not only did we break above downtrend resistance at 1.5480 (going on to hit a high of 1.5553), but the sharp rally off yesterday's lows has printed a hammer candlestick on the daily chart - a pattern that also implies the downtrend may be reversing. Nearest resistance levels from here are now 1.5581 (Monday's high), 1.5666 (30 Sep high), 1.5715 (29 Sep high), 1.5757 (19 Sep high), and 1.5821 (38.2% Fibonacci retracement of the sell-off 1.6618 to 1.5328). Weak support is now expected on a re-test of the former downtrend (currently 1.5480), then 1.5273 (yesterday's low) and 1.5124 (21 Jul low).
UsdJpy USDJPY's sluggish sideways trading is now taking it dangerously close to the lower edge of the current uptrend channel, and if we break below that it would negate whatever mild bullish bias remains. The lower edge of that shallow uptrend is now seen at 76.55-60, and is closely backed up by last Friday's lows (76.51). Below there, next supports are 76.34 (28 Sep low), 76.12 (21-22 Sep lows), and the all-time low 75.96 (set on 19 Aug). Nevertheless, until that downside break takes place, there is ample space overhead for the bulls to rally, with limited resistance. Next levels on the topside are 77.07 (5 Oct high), 77.30-40 (12 Sep US session high & 15 Sep high), 77.86 (9 Aug high), and 78.47 (8 Aug high).
UsdChf USDCHF made light work of 0.9285 resistance yesterday and eventually went on to hit a high of 0.9315; however subsequent to that the pair drifted back towards 0.9200 and we are now consolidating down at these lower levels. The 1-month uptrend channel is still very much intact so we do expect the bulls to recover from this temporary lull. The next resistance levels above are now 0.9315 (yesterday's high), then 0.9369 (9 Mar high), and 0.9506 (22 Feb high). Supports on the downside are much the same at 0.9149 (4 Oct low), 0.9081 (this week's low set on Monday), 0.8920-30 (27-28 Sep lows), 0.8856 (21 Sep low), 0.8791 (20 Sep low), and 0.8648 (15 Sep low).