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A triangle may  be unfolding in the EURUSD.  If so, then price would come lower in wave E towards 1.5575.  The GBPUSD decline has accelerated, which is expected to continue.  The USDJPY is still expected to test 103.75/104.00 before forming a top.

Near term, both legs of the down-up sequence from 1.5904 are not clear impulses.  This makes it likely that a larger correction is underway; either a triangle or a flat.  It is possible that waves A through D of a triangle are complete and that wave E is underway towards 1.5600 or just below.  E waves of triangles are usually sharp and have a tendency to penetrate the lower triangle line.  The triangle line crosses through 1.5593 tomorrow.  It does remain possible that a larger correction is underway.

Visit our recently updated Euro Currency Room for specific resources geared towards this currency.

As we have focused on in recent days, an A-B-C correction (as a iv wave within the 5 wave decline from 114.65) should come to an end this week or next.  Wave C is viewed as underway from 98.56.  Wave C would equal wave A at 103.88, very close to the former 4th wave extreme at 103.58.  Resistance near the 104 area is reinforced by a resisting trendline that is drawn off of the 12/27 and 2/25 highs.        

Visit our recently updated Yen Currency Room for specific resources geared towards this currency.

Cable is finally rewarding our patience.  The decline has accelerated and we are confident that wave C (or 3) within the bearish cycle from 2.1160 has started.  Remember, the longer term (a month or 2 out) objective is not until near 1.8500.  Risk on short positions can be moved to 2.0047.   

The bullish count that we are tracking places a low in wave ii in the form of an expanded flat at 1.0012.  Bullish potential is great as long as price is above this level.  A rally through 1.0249 would confirm that either a 3rd wave or C wave is underway within the bullish cycle from .9647.  Objectives would be at 1.0473 and 1.0844. 

STRATEGY: Bullish, against 1.0012, target TBD

Near term, the latest bull leg (.9710-1.0324) is a wave 1 impulse within a 5 wave bull cycle (wave i of 1 is a diagonal).  Therefore, wave 2 is underway now.  Specifically, the drop from 1.0324 is wave a of 2 and the rally to 1.0172 is wave b (or part of wave b).  The wave 2 correction will probably continue for a few more weeks before ending closer to .9950 (61.8%) / 1.00 (former resistance).  This is where we will look to enter long. 

Visit our recently updated Canadian Dollar Currency Room for specific resources geared towards this currency

We are treating the decline from .9470 (which was a truncation) as a series of 1st and 2nd waves.  This bearish count remains valid as long as price is below .9353.  The sharp drop from just below .93 presents a shorting opportunity against .9353.     

STRATEGY: Bearish, against .9353, target below .8952

Bigger picture, it is possible that a significant top is in place at.8215 (this may be the end of large wave B from .5927).  Price is expected to eventually come under .5927 (in the coming months).  Near term, the NZDUSD needs to stay below .8101 in order for the bearish count to remain favored.  The pair is facing resistance from a short term trendline.

STRATEGY: Bearish, against .8101, target TBD

Tell us what you think about this report: contact the strategist about the article at jsaettele@dailyfx.com

[1] STRATEGY is a summary of our best technical ideas.  The ideas are subjective and are subject to change everyday although trades are typically held for at least a few days and sometimes a few weeks or more.  Ideas are also included for crosses throughout the week; these are published at separate articles at DailyFX.