EUR/USD â�,�“ As we said yesterday regarding EURUSD, â�,��"the pair could bottom out near 1.3052 â�,�“ the decline from 1.3292 would equal the 1.3367-1.3126 decline at 1.3052 (a classic a-b-c correction).â�,� This is precisely what the pair has done, as price bounced from yesterdayâ�,��"�s 1.3051 low at the supporting trendline connecting the 10/24 and 11/21 lows. Momentum could carry EURUSD back towards the 12/4 high of 1.3367 should price be able to close above immediate resistance at the 23.6% fibo of 1.2482 â�,�“ 1.3368 at 1.3159. However, a break below the noted supporting trendline and the psychologically important 1.3000 level could lead to more significant declines to the 61.8% fibo at 1.2820.

USD/JPY â�,�“ The USDJPY continues to rally but is nearing resistance at a trendline connecting the 10/13 and 10/24 highs, with the line currently sitting at 118.36 and falling about 4 points per day. Should price break higher, the pair could target the 10/13 high at 119.87. However, daily oscillators are starting to ease back and could point to a slowdown in momentum. A turn lower could take aim on the 12/13 low at 116.64.  

GBP/USD â�,�“ Cable surged higher this morning and is currently encountering resistance at a short term trendline at the 12/1 and 12/13 highs. The line currently rests at 1.9664 and declines 16 points a day. A break above this level could take aim on resistance at the 12/13 high at 1.9727. However, if the trendline holds and a decline ensues, GBPUSD could dip back to the 38.2% fibo of 1.8832 - 1.9846 at 1.9461.

USD/CHF â�,�“ USDCHF backed off from yesterdayâ�,��"�s high of 1.2267, and as weâ�,��"�ve noted over the past few days, â�,��"The pair closed above the 20 day SMA last Thursday for the first time since 10/25 â�,�“ indicating a medium term shift in trend. Overbought RSI on the 240 minute chart combined with the 3 wave structure of the advance from 1.1878 may serve to limit gains but only a decline below 1.2097 instills confidence in a bearish scenario.â�,� RSI on the 240 minute chart has dropped from overbought levels and could signal further declines.

USD/CAD â�,�“ Loonie is at a standstill at channel resistance at the current juncture, where price has held for nearly 4 days.  Daily oscillators near or at overbought levels along with divergent short term oscillators give scope to further weakness / consolidation.  Initial support is at the 12/8 high at 1.1516 while the next major level of resistance is not until 1.1771.

AUD/USD â�,�“ Aussie has regained strength as oscillators are picking up from bearish territory following recent declines from the double top formed at the 12/1 and 12/8 highs. However, price looks to target immediate resistance at the 12/13 high at .7893. Declines from current levels could slip down to significant support at the 11/1 high at .7766.

NZD/USD â�,�“ The Kiwi remains clustered near the 61.8% of .7463-.5927 between .6814 and .6939 and has stalled near the 12/8 and 12/14 highs.  While RSI has declined from above 70 on the daily, the uptrend remains in place above the trendline drawn off of the 6/28 and 11/15 lows.  That line is at .6729 today and increases about 4 pips per day. A short term trendline near .6850 keeps the short term bias bullish.  A decline below this line shifts focus to the 12/6 low at .6814.

Jamie Saettele is a Technical Currency Analyst for FXCM.