Today's Market Outlook

EURUSD

Extended month-long drop from 1.6040 to reach 1.4570 last Tuesday, before recovering to 1.4812. A short-term head and shoulders top was then completed on last Friday's reversal under 1.4666/71. A steady retreat has followed, having today breached 1.4570 low to exceed 1.4550/30 and 1.4496/82 targets, opening 1.4450/40, possibly key 1.4390/65 area. Upside, 1.4556/70 zone now offers resistance.

Res: 1.4516, 1.4538, 1.4556, 1.4580
Sup: 1.4464, 1.4450, 1.4440, 1.4422

GBPUSD

Continues to slide from 1.8792, 21/22 Aug lower top, extending the multi-week downtrend from 2.0162, to a succession of new 2-year lows. Losses have yet again accelerated lower today, building on Monday's loss of 1.8000. Hopes of a minor low at 1.7845/50 are over, a lower top at 1.7940/44 has triggered an extension lower, with 1.7777/50, then 1.7715/1.7679 seen as next downside targets.

Res: 1.7885, 1.7907, 1.7954, 1.7984
Sup: 1.7778, 1.7752, 1.7715, 1.7679

USDJPY

Firmed off 15 July 103.77 low, to reach 110.67 on 15 Aug, before falling back to 108.13, developing a broad range. Completion of a 5 day triangle has triggered a break under the 108.13/00 support area to signal an extension lower, to probe below 107.68. 107.62 was reached and a rebound is now breaching 108.58-70 to neutralize bears.

Res: 109.00, 109.22, 109.57, 109.72
Sup: 107.91, 107.77, 107.62, 107.46

USDCHF

Extended rise from 1.0011 to 1.1087, but failed to see a lasting break of 20 Aug high at 1.1042, retreating from 1.1087 to 1.0884, before recovering. Break through 1.1025 completed a base, with initial highs at 1.1040/48 now breached since yesterday's 1.0950 higher low. 1.1108/24 also exceeded, raising hopes of fresh gains to 1.1173/92. Corrective pullback on overbought hourlies, however, may precede rally.

Res: 1.1150, 1.1173, 1.1192, 1.1202
Sup: 1.1048, 1.1020, 1.1013, 1.1000

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The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.