EUR/USD â�,�“Over the past few weeks weâ�,��"�ve mentioned that 1.2456 to 1.2938 is in a 5 wave bullish sequence and the subsequent decline to current levels is completing a third wave (of a correction labeled a-b-c).  As we said last week, â�,��"corrective wave c (beginning at 1.2874) would equal corrective wave a (1.2938-1.2723) at 1.2659.  This 1.2660/80 zone is the ideal bottoming area for EURUSD and weâ�,��"�ll look for a rally from there.â�,� A close above 1.2680 would confirm this idea and hourly oscillators favor a move higher.

USD/JPY â�,�“ USD/JPY is still contained at the apex of a triangle and faces substantial resistance in the 117.38-48 zone, with a trendline formed from the 2/3 high at 119.38. Currently, the pair is holding at the 78.6% fibo of 119.38 â�,�“ 108.96 at 117.14. With RSI on the hourly and daily charts over 50, price could probe the resistance area and break higher. However, a drop below the confluence of the supporting trendline at 116.18 and the 38.2% fibo of 113.95 - 117.49 at 116.14 could signal further declines to target the 9/5 low of 115.55.

GBP/USD â�,�“ As we said on Friday, â�,��"GBP/USD is approaching a supporting trendline on the daily but upside potential does not seem as great (due to primarily wave count).  The trendline is at about 1.8640.â�,� Former support at 1.8775 (8/18 low) is now resistance and a push above there turns prospects more bullish and could bring about a continuation of the uptrend. However, a close below the supporting trendline could target the 7/25 low of 1.8383.

USD/CHF â�,�“ The USDCHF is just below resistance from the confluence of the 9/6 high / 78.6% fibo of 1.2595 â�,�“ 1.2181/ trendline from the 3/10 high of 1.3229 at 1.2506/7. That much resistance argues for a drop in the USDCHF from current levels but a daily close above 1.2507 negates our immediate bearish bias. However, a decline would aim for support at the confluence of the 8/25 high and 61.8% fibo of 1.2595-1.2182 at 1.2423/37.

USD/CAD â�,�“ USD/CAD made a break higher on Friday and now holds below a resistance trendline from the 8/1 high of 1.1372. With hourly RSI coming down steeply from overbought levels, the pair could aim for support (former resistance) at the 9/5 high of 1.1137. However, a move above the trendline could target the confluence of the 50.0% fibo of 1.456 â�,�“ 1.1028 and 8/21 high at 1.1242/57.

AUD/USD â�,�“ Our longer term bearish bias remains but the move down from .7721 looks stretched as it has run into support from a series of daily lows (.7516 to .7523).  Combined with the divergent oscillators at the recent low of .7510, signals favor a rally attempt which may be in the works now, but short-term fibo resistance begins at .7549 (38.2% of .7270-.7721) and could limit significant moves higher.

NZD/USD â�,�“ On Friday we said, â�,��"Kiwiâ�,��"�s decline may also be coming to end. RSI has rallied above 30 3 times in the last 4 days on the hourly.  The first two crosses above 30 were fake outs â�,�“ perhaps the third one is the real deal.  The decline from .6580 is in 3 (a-b-c) wavesâ�,�¦The 3rd (begins at .6502) nearly equals the first (.6580-.6438).  They would equal each other at .6360â�,�¦One more low below .6372 would create divergence with hourly oscillators and open up the door for a more convincing rally.â�,� We were correct in our analysis and the kiwi is currently making its way higher, but with substantial resistance at the confluence of the series of highs on 8/17, 8/18, 8/21, low on 9/7, and the 61.8% fibo of .5927 - .6580 at .6422/26.

Jamie Saettele is a Technical Currency Analyst for FXCM.