The GBP/USD continued to consolidate around monthly pivot resistance at 1.5560 yesterday. The pair did peek above the previous high, triggering our stop buy order at 1.5587. This morning, the pair put in a long-legged Doji pattern, indicating significant indecision in the market. Though rates have inched below the near-term bullish trend line, the bias remains to the topside, especially if this week’s high at 1.5600 is broken. We remain long with a target at 1.5657 (below previous resistance) and a stop at 1.5512 (just under the week’s low).

USD/JPY has been the surprise of the day thus far, with rates surging above previous / monthly pivot resistance at 77.32. The strong rally suggests significant buying pressure behind the move; moving forward, bulls will seek to maintain momentum and push the pair up to the Monthly R1 pivot at 77.68 or the 78.00 round handle. Any pullbacks are likely to find a floor at the monthly pivot, which should now provide support for the unit.

The USD/CHF has merely passed time over the past 24 hours, with rates consolidating in an extremely tight range below .9300. As we mentioned in yesterday’s report, the .9300 level represented a significant previous level of support, and moving forward, this area is anticipated to limit any rallies in the pair. The USD/CHF 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 bounced yesterday after testing critical long-term 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.

The Aussie pulled back yesterday after breaking above the round 1.0500 handle in early week trade. The drop carried over into today’s early European session, where the AUD/USD put in a Bearish Marubozu candle, a sign of strong bearish momentum. However, support is expected to emerge near the Monthly R1 pivot at 1.0439. For the rest of the day, we will closely watch for support to emerge in this area and the longer-term uptrend to resume. Stay tuned to FX360 and our daily Live Market Analysis webinars for any intraday updates.

The NZD/USD has also pulled back over the past 24 hours, but the Kiwi has shown some relative strength against the Aussie. Yesterday afternoon, we shared a trade opportunity to buy the NZD/USD within the context of the longer-term uptrend. This trade remains active, so we will continue to wait for a pullback down to .8053 to enter buy trades, targeting .8225 with a stop at .7990. Note that it would also be prudent to move stops to breakeven if rates rally to previous resistance at .8116 following entry.