EurUsd The broad move that started on the 28th – taking us from 1.3328 to 1.2707 sets an initial resistance at 1.2853 (23.60% retracement), then 1.2944 on the 38.2% line. However focus is on the downside, 1.2812 as the initial support then a strong support at 1.2787 (61.80% level on the 1.2707 – 1.2917 retracement move which coincides with the January 23rd low. 1.2562 then 1.2389 levels a midterm target as December (2 year) lows.
GbpUsd The cable has seen its price action contract and trade a narrower range since the beginning of February. Strong resistance stands at 1.4500 (Feb 1st high). Nearer to current prices we see 1.4350 and 1.4290 as key levels to watch for as they take into account the 1.4506 – 1.4058 move and recent highs. Below 1.4163 stands as an initial support, which gives way to 1.4070 – 14050 levels, further Sterling weakness could pave the way for sub 1.40 levels – Cable continues to be under pressure.
UsdJpy The Yen weakened late last session as the Japanese government sets guidelines to buy 1 Trillion Yen worth of financial stocks. While the Yen has been bucking the trend as of late sneaky attempts at intervention are creeping in – for the meantime the Yen's advance seems to be slowing, Strong support stands at 87.13 – levels never seen since mid 1995 however closer to market price we are looking at 88.33 and 88.80. We see a dagger entry opportunity forming as price action converges – this usually signals a breakout on the upside – recent intervention could be the instigator. We see 90.00, 90.89 and 91.20 as initial resistances, however a strong breakout would test 94.65 (Jan 6 high).
UsdChf The swissy has risen steadily recently, the strong bullish trend that took us from 1.0892 to 1.1720 during the month of February sees multiple support levels. 1.1099 is a very strong level we tested 4 times last month before the pair moved higher, the next key level stands at 1.1315. In the nearer term 1.1581 looks to hold if we move higher. On the upside the pair is capped at 1.172 (Jan 23 high), closer we see 1.1681 as a strong resistance 0.9646 – 1.2309 move from May 2008 to November 2008.