The EURUSD slipped below my trend line support earlier today in Asian session as you can see on my h4 chart below. This fact could be seen as the end of technical bullish correction and trigger further bearish pressure testing 1.2588 and 1.2523 region. Immediate resistance at 1.2700. Break above that area and a movement back above the trend line support could lead us into neutral zone in nearest term as direction would become unclear even could produce a false breakdown scenario which could trigger upside pressure testing 1.2764 (yesterday's high). Fundamental focus today is on French Industrial Production. A disappointing result could push the pair lower. On the other hand, a good result could give support to the Euro but overall I think Euro zone is still in negative territory and the major scenario remains to the downside.
The GBPUSD also had a significant technical move earlier today in Asian session, slipped below the bullish channel as you can see on my h4 chart below. This fact could trigger further bearish pressure testing 1.5340 and 1.5296 as the bullish correction could end here, especially if break below 1.5370. Another movement back inside the bullish channel could lead us into neutral zone as direction would become unclear, produce a false breakdown scenario and keep the bullish correction intact re-testing 1.5475 and 1.5531. Fundamental focus today is on the UK PPI Input. A disappointing result could push the pair lower. On the other hand, a good result could give support to the Sterling but overall the major scenario remains bearish.
The USDJPY attempted to push lower yesterday, bottomed at 83.49 but closed higher at 83.77 and keep moving higher earlier today in Asian session, hit 84.28. Like I said yesterday, the rejection from 83.35 historical level could produce bearish exhaustion and price is making a new bullish channel after rebound from that support. The bias is bullish in nearest term testing 84.82 and the trend line resistance. Break above that area could be seen as a beginning of a new bullish phase at least in nearest term. On the downside, only a break below 83.35 could continue the bearish scenario.
The USDCHF bearish pressure was stopped and corrected higher yesterday, as I had expected. Earlier today in Asian session, as you can see on my h4 chart below, price continue the upside pressure, break above the trend line resistance indicating potential bullish reversal scenario at least in nearest term testing 1.0302. Immediate support at 1.0130. Break below that area and a consistent move back below the trend line resistance could produce a false break out scenario and continue the bearish view re-testing 1.0060/30 region.
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