The GBP/USD also consolidated over the past 24 hours as rates were unable to hold conclusively above the round 1.5700 handle. The lack of significant movement recently means that yesterday’s comments are still valid: if the 1.5700 barrier is convincingly eclipsed, the unit may target the Monthly R1 pivot at 1.5758. From a longer-term perspective, the bias will remain bullish above the Monthly Pivot at 1.5560.

USD/JPY briefly found support at the monthly pivot (77.32) yesterday before dropping through this key near-term floor overnight. As of writing, rates are consolidating around 77.00, which leaves the near-term bias cloudy. To the downside, support is anticipated near the previous significant lows at 76.60, while any rallies that emerge are likely to be capped by the monthly pivot at 77.32.

The USD/CHF bounced modestly yesterday, but remains well within the longer-term bearish trend. Rates recently put in a Bearish Engulfing Candle on the 4hr chart, indicating that the bears have wrested control of the market from the bulls. However, rates are currently testing significant previous support at .9180. This level will serve as a key barometer of price action moving forward: if rates hold above this level, the bias will be mildly bullish, whereas a drop below floor would pave the way for additional drops down to the Monthly S1 Pivot at 0.9116.

The USD/CAD did not buck the broader trend of consolidation, with rates initially bouncing modestly yesterday before selling off overnight. Rates are currently consolidating near the critical psychological level at parity (1.00), but a break below the longer-term descending triangle suggests further drops down toward .9900 over the next few days (see last week’s outlook report for more). Meanwhile to the topside, the strong previous-support-turned-resistance level at 1.0070 is likely to limit any near-term rallies that do emerge, and potentially present selling opportunities later on today.

The Aussie broadly followed the same path as the other commodity dollars yesterday, pulling back during the North American session before rallying this morning. Rates continue to consolidate below the Monthly R2 pivot at 1.0668; this key leading level of resistance will be critical to watch for the remainder of the day. A close above 1.0680 would signal a higher probability of a move up to 1.0750 into next week.

The NZD/USD rallied during today’s European session but is currently testing resistance at 4-month highs near .8240. As of writing, rates are currently trading a few pips above this level after forming a Bullish Marubozu Candle during the early European session. Traders should watch for the close of the current 4hr candle at 11:00am Eastern: if rates manage to close above .8250, it would clear the way for a bullish continuation into the close of the week and into next week.