The GBP/USD bounced during today’s European session, but continues to struggle with monthly pivot resistance at 1.5560. The European session bounce confirmed the near-term bullish trend line and formed a Bullish Engulfing Candle on the 4hr chart, showing that the bulls have gained the upper hand. If rates break above this morning’s high at 1.5582, we may see a quick continuation up to previous resistance near 1.5660.

To take advantage, traders could set a stop buy order at 1.5587 with a stop at 1.5512 (below today’s low) and a target at 1.5657 (just under previous resistance).

USD/JPY pulled back yesterday after testing monthly pivot resistance at 77.32 on Friday. If rates manage to eclipse this level this week, there would be room for a more substantial rally up to 78.00 over the course of next week. Meanwhile, the bias will remain neutral for further consolidation as long as rates remain below 77.32. Regardless, the lack of near-term volatility recently has left few trading opportunities.

The USD/CHF gapped slightly higher to open this week before coming under heavy selling pressure during today’s early European session. The drop formed a Bearish Marubozu Candle on the 4hr chart, indicating strongly bearish momentum as rates broke below previous / round handle support at .9300. The pair may have room for more weakness early this week, as the next level of previous support is down near .9180-.9200. Stay tuned to FX360 and our daily Live Market Analysis webinars to take advantage of any bearish opportunities that do emerge.

The USD/CAD also came under selling pressure this morning, with bears pushing the unit back toward significant previous support at 1.0070. The pair remains within the longer-term descending triangle pattern highlighted in our weekly technical preview report, though a break below 1.0070 support would likely foreshadow a quick move down to parity (1.00) or .9900 in short order. To the topside, bounces are likely to be contained below descending trend line resistance near 1.0200.

Specifically, readers could set a stop buy order at 1.0150 (above previous-support-turned-resistance at 1.0140) with a stop at 1.0109 (below today’s low) and a target at 1.0197 (under the round 1.02 handle).

The AUD/USD rallied Friday, triggering the long trade highlighted in Friday’s Candlestick Daily report, and this morning’s European session rally finally took rates up to the profit target at 1.0495. The unit formed a clear Bullish Marubozu candle as rates broke above 1.0500 resistance; this candlestick pattern shows the strong bullish momentum in the pair and suggests the potential for a bullish continuation up to 1.0600 or higher moving forward. At this point, we will wait for intraday pullbacks as opportunities to buy into the uptrend at a more favorable price.

The Kiwi followed its antipodean brother higher, breaking above the .8100 handle in early European trade. As of writing, rates are consolidating around the Monthly R2 pivot at .8119, though a break above this barrier would open the door for a further continuation rally in the pair. Any pullbacks that do emerge will be seen as buying opportunities, ideally off previous resistance near .8000 or .8100. Stay tuned to FX360 and our daily Live Market Analysis webinars for any intraday updates.