EurUsd After yesterday's dip to lows of 1.3705, EURUSD has recovered strongly into fresh highs of 1.3838. Next resistance levels are close by at 1.3861 (2 Feb high) and 1.3896 (61.8% fibonacci retracement of 1.5145 to 1.1876), but overall, we remain confident in our medium term view that EURUSD has the momentum and support for an eventual challenge on the psychologically important 1.4000 level. First support is now 1.3705 (yesterday's low), 1.3635 (low seen Tuesday evening), 1.3528 (22 Feb low) and 1.3460 (15 & 16 Feb low). Indeed, we still feel that 1.3460 would be a decent area to add to longs, but would start to reconsider our bullish bias on a test of the neighbouring supports at 1.3428 (14 Feb low) and 1.3397 (20 Jan low).

GbpUsd Just as we forecast in yesterday's report, a liquidation of speculative longs weighed heavily on GBPUSD in the past 24 hours; causing a break down of the 1-2 week uptrend channel (around 1.6155) and a low of 1.6085. Nevertheless, the sell-off was caught by good support ahead of 1.6075 (17 Feb low), and we eye further support around 1.6035 (lower edge of the broader 2-month uptrend channel). Although our bullish bias remains as long as the broader 2-month uptrend is intact, we are certainly braced for more downside pressure today as there is a bearish engulfing candlestick printed on the daily chart. We would be forced to reconsider our bullish bias if we break below 1.6000 psychological support, but further supports are still eyed at 1.5965 (11 Feb low), 1.5823 (31 Jan low), 1.5751 (which caught the sell-off after the first GDP release), and 1.5718 (13 Jan low). On the topside, we are still yet to mount a credible challenge on 1.6300 resistance (4 Nov high), but if we can break higher then the route higher is cleared for a run at 1.6460 (19 Jan 2010 high) and 1.6515 (7 Dec high).

UsdJpy After yesterday's dip to lows of 1.3705, EURUSD has recovered strongly into fresh highs of 1.3838. Next resistance levels are close by at 1.3861 (2 Feb high) and 1.3896 (61.8% fibonacci retracement of 1.5145 to 1.1876), but overall, we remain confident in our medium term view that EURUSD has the momentum and support for an eventual challenge on the psychologically important 1.4000 level. First support is now 1.3705 (yesterday's low), 1.3635 (low seen Tuesday evening), 1.3528 (22 Feb low) and 1.3460 (15 & 16 Feb low). Indeed, we still feel that 1.3460 would be a decent area to add to longs, but would start to reconsider our bullish bias on a test of the neighbouring supports at 1.3428 (14 Feb low) and 1.3397 (20 Jan low).

UsdChf Once again we start the day with a new all-time low for USDCHF, with the pair hitting 0.9234 overnight and remaining heavy at the start of European trade. With ongoing tensions in the Middle East & Africa ensuring the fundamental support for the CHF move, and the technical perspective looking great for the bears, it's now a case of seeing how deep we can go. We have gone short on the break below 0.9300 and now wait to see a test of 0.9200 and 0.9100 psychological supports. Really, there is not much discernible support under these conditions, but we hope to see a challenge on 0.9000 in the coming weeks. On the topside, sellers will probably start to precipitate around 0.9300 (former all-time low), 0.9390 (yesterday's high), 0.9505 (22 Feb high), 0.9540 (Friday's high), and 0.9600 (17 Feb high).