Euro / British Pound
No change from Monday: “Although exceptionally strong, the EURGBP rally is probably just (most of) wave D of a triangle that has been underway since December 2008. Expect consolidation near term with short term support at 8920-75 before additional strength targets 9244.”
Euro / Canadian Dollar
The EURCAD remains well within its bearish channel but a key reversal was made yesterday. This is a strong reversal warning when combined with RSI divergence at the low. Resistance is 14212 and 14312. A rally above 14446 would signal a reversal.
Euro / Australian Dollar
The EURAUD has dropped to a new low but the decline from 15331 may be wave 5 of 5 within the decline from 16633 (November 2009 high). A key reversal was made yesterday (like the EURCAD), which is accompanied with RSI divergence. Beware of a reversal.
Euro / New Zealand Dollar
The EURNZD has exceeded trendline resistance as well as its 21 day SMA. RSI divergence at the 2/18 low gives scope to a more important low. A move above 20077 would bring an end to the series of lower highs and expose 20454, 20658, and then 21267.
Euro / Japanese Yen
The new EURJPY low is accompanied by divergence with RSI on the daily but the structure of the rally is corrective. In fact, having already reached the area of the former 4th wave (12155-12266) the EURJPY may continue lower from below 12193. Exceeding that level would expose resistance at 12266, then 12362. I am bigger picture bearish against 12528.
British Pound / Japanese Yen
After meeting channel support, the GBPJPY has bounced slightly. The pair could see a bounce into the 13463-13673 zone, but price should remain below 13822. Watch for channel resistance as well.
Canadian Dollar / Japanese Yen
The decline from 8849 is viewed as wave i of the next 5 wave decline. The corrective advance from 8314 may be complete as price has reached the 50% retracement of the decline / former 4th wave extreme. Additional resistance levels are 8648 and 8713. The larger trend is down against 8849.
Australian Dollar / Japanese Yen
The decline from 8284 is viewed as wave i of the next 5 wave decline. The corrective advance from 7817 may be complete as price has reached the 50% retracement of the decline / former 4th wave area. Additional resistance levels are 8107 and 8171. The larger trend is down against 8284.
New Zealand Dollar / Japanese Yen
The NZJPY is in the same position as the AUDJPY. The decline from 6456 is viewed as wave i of the next 5 wave decline. The corrective advance from 6087 may be complete as price has reached the former 4th wave extreme. Additional resistance is at 6332. The larger trend is down against 6456.
Jamie Saettele publishes Daily Technicals every weekday morning, COT analysis (published Friday evenings), technical analysis of currency crosses on Monday, Wednesday, and Friday (Euro and Yen crosses), and intraday trading strategy as market action dictates at the DailyFX Forum. He is the author of Sentiment in the Forex Market. Follow his intraday market commentary and trades at DailyFX Forex Stream. Send requests to receive his reports via email to jsaettele@dailyfx.com.
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