Despite last week’s retreat to 1.5648, cable found renewed buying interest just above previous support at 1.5644 and has staged a rebound from there, the breach of 1.5880 resistance suggests correction from 1.5929 has ended and retest of this level is likely, however, break there is needed to confirm recent rise from 1.5234 has resumed and extend gain to 1.5990-00 (50% Fibonacci retracement of 1.6747-1.5234 and psychological resistance at 1.6000)

Despite intra-day brief rise to 81.66, the retreat from there suggests minor consolidation below this level would take place and retracement to 80.00 would be seen, however, still reckon previous resistance at 79.55 (just above 38.2% Fibonacci retracement of 76.03-81.66 at 79.51) would turn into support and bring another rise later. A break of said resistance at 81.66 would extend the major correction from record low of 75.31 for retracement of medium term downtrend to next resistance at 82.23

Although the single currency rallied after renewed buying interest at 1.2975 and price rose to as high as 1.3486 last Friday, as recent upmove from 1.2624 is still viewed as retracement of the intermediate fall from 1.4248, upside should be limited and price should falter below resistance at 1.3550, bring retreat later. Below previous resistance at 1.3322 would bring weakness to 1.3290/95

Euro’s recent rise from 97.04 low has accelerated this month, signaling the intermediate fall from 123.33 has ended (tentatively the first leg of wave iii) has ended there and consolidation with upside bias is seen for retracement of recent downtrend to 109.00 and possibly towards 110.15-20 (50% Fibonacci retracement of 123.33 to 97.04), however, previous resistance at 111.57 (previous 4th of a lesser degree) should cap upside

As the greenback has remained under pressure after meeting renewed selling interest at 0.9300 last week, adding credence to our view that the rise from 0.7068 record low has indeed formed a temporary top there and consolidation with mild downside bias remains for retracement to 0.8960 (61.8% Fibonacci retracement of 0.8568-0.9595), however, reckon downside would be limited to 0.8875

As the single currency has continued to find good support at 0.8264 and staged a stronger-than-expected rebound this week, suggesting a temporary low has been formed at 0.8222 and consolidation with upside bias is seen for retracement of recent decline to previous support at 0.8531 and then towards 0.8595-00 (61.8% Fibonacci retracement of 0.8831-0.8222), however, reckon upside would be limited to previous resistance at 0.8665

As the greenback has fallen again after meeting renewed selling interest at 1.0052 (previous support), suggesting near term downside risk remains for the decline from 1.0524 (a leg top) to bring weakness to previous support at 0.9892, however, as this move is still viewed as the b leg of major correction downside should be limited to 0.9800-10 and 0.9720-25 should hold, bring another rebound later.

As the greenback has fallen again after meeting renewed selling interest at 1.0052 (previous support), suggesting near term downside risk remains for the decline from 1.0524 (a leg top) to bring weakness to previous support at 0.9892, however, as this move is still viewed as the b leg of major correction downside should be limited to 0.9800-10 and 0.9720-25 should hold, bring another rebound later.

Although sterling has retreated again after meeting renewed selling interest below previous resistance at 1.4597 and near term downside risk remains for the fall from 1.4801 temporary top to bring retracement of recent upmove to 1.4220-30, near term oversold condition should limit downside to 1.4110-20 and bring another rebound later. A break of 1.4490-00 would suggest low is possibly formed

Although cable rebounded after early retreat from 1.5929 to 1.5644, as price has retreated again today after meeting renewed selling interest at 1.5880, suggesting further consolidation below said resistance at 1.5929 would be seen and another test of said support at 1.5644 cannot be ruled out, however, reckon downside would be limited to 1.5582 (50% Fibonacci retracement of 1.5234-1.5929) and bring another rise later.

The greenback found very good demand at 76.03 and has rallied this month in line with our expectation (our long position entered at 76.70 met indicated target at 78.00 with 130 points profit) and once said resistance at 78.29 was penetrated, dollar surged to as high as 79.89 yesterday. This anticipated rally together with the breach of previous resistance at 79.55 add credence to our view that wave v has ended at 75.31 earlier last year and bullishness remains for test of previous resistance at 80.25

Despite last week’s retreat to 1.2975, renewed buying interest emerged there and has staged a strong rebound from there, suggesting the rebound from 1.2624 temporary low is still in progress and may bring retracement of recent downtrend, above resistance at 1.3322 would extend gain to 1.3436 (50% Fibonacci retracement of 1.4248-1.2624) but price should falter below 1.3500 and resistance at 1.3550 should remain intact

Despite early anticipated retreat to 99.25, the subsequent strong rebound adds credence to our view that low has been formed at 97.04 and current breach of resistance at 102.21 signals another leg of correction is now in progress and a stronger retracement of recent decline to 102.40-50 (61.8% Fibonacci retracement of 105.72-97.04) and possibly 103.00-10 would be seen

Although dollar’s retreat from 0.9595 signals the rise from 0.7068 record low has indeed formed a temporary top there and consolidation with mild downside bias remains for retracement to 0.9080-85 (50% Fibonacci retracement of 0.8568-0.9595) and then previous support at 0.9067, psychological support at 0.9000 should limit downside and reckon 0.8875 (38.2% Fibonacci retracement of 0.7711-0.9595) would hold

Despite last month’s fall to 117.30, the subsequent stronger-than-expected rebound suggest medium term decline is not ready to resume yet and further consolidation above 116.80 would take place and another test of 122.00 resistance is likely, break there would extend the rebound from 117.30 to previous resistance at 122.75, then towards 123.40-45 (61.8% Fibonacci retracement of 127.20-117.30)

Last week’s rise to 1.5884 adds credence to our view that low has been formed at 1.5234 earlier last month and indicated upside target at 1.5810 consolidation with upside bias remains for further gain to 1.5810-15 (61.8% Fibonacci retracement of 1.6167-1.5234) and previous support at 1.5869 had been met, bullishness remains for this move to bring a stronger retracement of recent decline to 1.5990-95

Although the greenback fell to as low as 76.03 last week, the subsequent rebound in part due to dollar’s broad-based strength on solid U.S. data has retained our view that further consolidation above record low of 75.31 would take place and mild upside bias remains for another bounce to 77.15-20 (50% Fibonacci retracement of 78.29-76.03), then to 77.43 (61.8% Fibonacci retracement). Having said that, above resistance at 78.29 (this would also penetrate 61.8% Fibonacci retracement of 79.55-76.03) is needed to retain bullishness and signal the retreat from 79.55 has ended at 76.03, then a stronger rebound to 78.70/75 would follow

The single currency moved more or less in line with our expectations and our short position entered at 102.00 met indicated downside target 100.05 (with 195 points profit) and price slipped to as low as 99.25 earlier this week before rebounding, this anticipated retreat suggests the first leg of correction from 97.04 has ended at 102.21 and 1-2 weeks of consolidation should take place.

Although dollar’s stronger-than-expected retreat from 0.9595 signals the rise from 0.7068 record low has indeed formed a temporary top there and consolidation with mild downside bias is seen for retracement to 0.9080-85 (50% Fibonacci retracement of 0.8568-0.9595) and then previous support at 0.9067, psychological support at 0.9000 should limit downside and reckon 0.8875 (38.2% Fibonacci retracement of 0.7711-0.9595) would hold