Majors yesterday seized the opportunity to incline in the markets versus the dollar yet it seems now we may witness slight downside corrections. Traders are betting that the Feds are to maintain interest rates at record lows as a report released later today will show that the Philadelphia manufacturing had contracted for the ninth consecutive month.

From the Euro zone, the calendar lacks fundamentals today where movements for the pair today may be technical and may be driven by the performance of the dollar. We see the pair yesterday successfully closed above the 61.8% correction (neckline for the head and shoulders pattern) at 1.3850 yet failed to breach the 1.40 mark sending the pair back lower to currently trade at 1.3950s. Technical indicators are supporting the downside movements for today as the Aroon up line is attempting to breach the 30 mark whereas the Aroon down line is trending above 70. Also, the Tenkan-Sen and Kijun-sen moving averages of the Ichimuko indicator are attempting to cross to the downside to revive this bearishness. Looking at the intraday basis, we see a bearish candlestick (hanging man) supported by the negative crossovers that are forming on the RVI and Stochastic indicators. Hence, we expect the pair is to decline today to target the neckline once again yet if it was able to breach the 1.40 mark, it will extend gains towards 1.4180.

As for the Cable, yesterdays incline was limited at the 38.2% correction at 1.6425 sending the pair back to the downside as it is trading near intraday lows so far at 1.6370s. Trading may be volatile as we see contradicting signals on technical indicators on the daily charts as the stochastic is giving a bullish crossover whereas the RSI is slightly adjusting to the downside. On the four hour charts we see a bearish reversal candlestick that may send the pair lower to 1.63 and 1.6220 respectively. Note that major fundamentals are on queue later today at 8:30 GMT from the UK which may affect movements for the pair.

The USD/JPY pair is currently trading near a two week low where it is currently facing a critical support level at 95.75 (23.6% correction for the long term decline from 124.10) where a breach of which will take the pair to 93.50 before opening the way towards 92.50. The pair yesterday was able to maintain trading below the 38.2% correction for the decline from 110.70 at 96.10 yet as it has entered an oversold area, we may witness an upside correction to retest the broken trend before reversing back to the downside. A close below the 95.75 level today will confirm a bigger possibility for further declines and will be assured by tomorrow's weekly close.