We recommended in our previous update made last Thursday (16 May) to buy at 1.0150 and a long position was entered later in that day, the greenback did find renewed buying interest there and rallied since, price surged again this week and rose to as high as 1.0393 today, met our indicated upside target at 1.0340 (with 190 points profit). Having said that, as the pair has retreated, suggesting consolidation with initial downside bias would be seen

Aussie has fallen again after brief recovery, the strength of recent decline suggests further weakness to 0.9650 would be seen, however, only break of previous support at 0.9581 would suggest a downside break of recent broad range has occured and signal a major correction from 1.1081 (either wave 5 V or wave 3 of V) is unfolding as A-B-C-X-A-B-C, hence second set of A-B-C would bring further decline to 0.9500 but reckon support at 0.9388 would hold from here

Current break of previous resistance at 1.2573 confirms our bullish view of a resumption of early upmove from 1.0075 low (wave 3 bottom) and upside bias remains for this move to bring a stronger correction of early downtrend towards 1.2700 and eventually towards 1.2762 (50% Fibonacci retracement of 1.5448-1.0075), however, near term overbought condition should limit upside to latter level and reckon 1.2800-10 would hold from here.

The British pound only recovered to 1.5323 (we recommended to sell at 1.5360) before renewed selling interest emerging, cable then dropped again late last week, as price has remained under pressure, suggesting the decline from 1.5607 top is still in progress and may extend weakness to 1.5128 (61.8% Fibonacci retracement of 1.4832-1.5607), then towards support at 1.5026-34, however, a daily close below psychological level at 1.5000 is needed to retain bearishness

Although the British pound moved higher again to as high as 156.75 early last week, sterling met resistance there and has traded narrowly since, suggesting as long as this level holds, consolidation with mild downside bias is seen for pullback to 155.00, then 154.00, however, break of 152.70-75 support is needed to signal a temporary top is formed and bring correction of recent upmove to 152.00 and later towards 151.00 but support at 150.75 should contain downside

The greenback only eased to 98.58 before finding renewed buying interest (we recommended to buy again at 97.80), recent upmove accelerated after breaking the indicated level of 99.95-100.00 (recent high and psychological resistance) and indicated targets at 101.45 and 102.35-40 (50% projection of 77.14-96.71 measuring from 92.57) had been met. Current firmness suggests recent upmove is still in progress and may extend gain to 103.90-00 and possibly 104.65-70

The single currency dropped again after brief recovery to 1.3030 last week, adding credence to our bearish view that the rebound from 1.2747 has ended at 1.3243 and bearishness remains for a retest of this support (this year's low so far) but break there is needed to retain our bearish count for the decline from 1.3711 (tentatively wave 2 top) to extend weakness to previous support at 1.2662, then towards 1.2590-00

The single currency has maintained a firm undertone this week after rising to as high as 132.78 on Tuesday, adding credence to our view that medium term uptrend has resumed in wave v and the upmove form 94.12 (bottom of wave v as well as wave (C)) should extend gain for a major correction of early downtrend (indicated upside targets at 132.05 - 50% Fibonacci retracement of entire fall from 169.97-94.12 and 132.45-50 - 50% projection of 100.34-127.71 measuring from 118.80 had been met) and further gain to 133.00-10

The greenback surged as suggested in our previous update, adding credence to our bullish view that fall from 0.9972 top has ended at 0.9024 and indicated upside targets at 0.9610 (61.8% Fibonacci retracement of 0.9972-0.9024) and 0.9715-20 (1.618 times projection of 0.9207-0.9499 measuring from 0.9247) had been met, althoug price has retreated from this week's high of 0.9748, pullback should be limited to 0.9525-35 and bring another rise later.

As the single currency has retreated after this week's brief bounce to 0.8516, retaining our view that near term downside risk remains for the fall from 0.8815 (wave 3 top) to bring correction of recent upmove to 0.8388 (50% Fibonacci retracement of 0.7961-0.8815) and possibly 0.8360-65 support, however, still reckon 0.8287 (61.8% Fibonacci retracement) would limit downside and price should stay well above previous resistance at 0.8225

The greenback only slipped to as low as 1.0014 last week before finding good support and the pair then staged the long awaited rebound, suggesting a temporary low is possibly formed there and consolidation with upside bias is seen for test of indicated resistance at 1.0295 (last month's high) but a sustained break above there is needed to retain bullishness and signal the fall from 1.0343 has ended and bring a retest of this level.

Aussie only staged a brief bounce to 1.0255 before running into fresh offers and tumbled from there on broad-based strength in the greenback, the break of previous support at 1.0116 signals an impulsive fall from 1.0625 (D leg top) is unfolding as the wave E of the triangle from 1.1081 (either wave 5 V or wave 3 of V) is still in progress for further weakness to 0.9800-02

Although euro's retreat from 1.3524 turned out to be stronger than expected and near term downside risk remains for weakness to 1.3050 and possibly towards 1.3000, as outlook remains consolidative, reckon support at 1.2954 would contain downside and bring another reound later, Above 1.3240-45 would suggest low is possibly formed and bring test of 1.3334 resistance but a daily close above there is needed to signal the fall from 1.3524 has ended and bring a stronger rebund to 1.3386

After reaching indicated retracement level of 1.5606 (50% Fibonacci retracement of 1.6380-1.4832), the British pound continued to meet strong resistance around this level and has retreated sharply late last week, suggesting top has possibly been formed at 1.5607 and consolidation with downside bias is seen for weakness to key support at 1.5196, a daily close below there would add credence to this view and suggest the rebound from 1.4832 has ended and bring further weakness to 1.5128

Although sterling surged to as high as 1.4771 last week, the subsequent suggest consolidation below this level would be seen with mild downside bias for test of support at 1.4500-10 but a daily close below there is needed to signal top is formed and bring further weakness to next support at 1.4412, once this level is penetrated, this would suggest the rise from 1.3967 has possibly ended and bring subsequent fall to 1.4369 (50% Fibonacci retracement of 1.3967-1.4771), then later towards 1.4270-75

We recommended in our previous update to buy dollar at 97.80, however, the single currency only eased to 98.58 before finding renewed buying interest and once indicated resistance at 99.95-100.00 (recent high and psychological resistance) was penetrated, the greenback rallied to as high as 102.15 earlier today, this anticipated resumption of upmove suggests the wave v of the larger degree wave C of the major reversal from 75.31 record low is still in progress and further gain to 102.35-40

What a pity that we just missed our short entry by 5 points, we took the view that top has been formed at 1.3243 and recommended to sell euro at 1.3200, however, the pair only recovered to as high as 1.3195 before meeting renewed selling interest there, euro then tumbled on dollar's broad-based strength, once support at 1.3033 was penetrated, decline accelerated and the pair fell to as low as 1.2935 on Friday. This breach of previous support at 1.2954 not only confirm our view of a top formation at 1.3243 but also suggest the entire rise from 1.2747 has ended

The greenback found renewed buying interest at 128.99 this week and has rallied yesterday as USD/JPY broke above psychological resistance at 100.00, current breach of recent high of 131.10 confirms medium term uptrend has resumed in wave v and the upmove form 94.12 (bottom of wave v as well as wave (C)) should extend gain for a major correction to 132.05 (50% Fibonacci retracement of entire fall from 169.97-94.12), then 132.45-50

We recommended to buy dollar again at 0.9290 in our last update mede on Friday (3 May), however, the greenback only eased to 0.9306-13 before finding renewed buying interest and has rallied this week above previous resistance at 0.9567, adding credence to our bullish view that fall from 0.9972 top has ended at 0.9024 and bullishness remains for the rise from this low to extend further gain to 0.9610 (61.8% Fibonacci retracement of 0.9972-0.9024)