The GBP/USD has continued to rally above the bullish trend line on the 2hr Chart   The beginning of this trend line occurred near 1.5330, which has provided strong support several times on the Weekly Chart.  Therefore, we have a bullish bias for this pair, and we will watch for new bullish patterns that would allow us to go long near the trend line.

No trade.

The USD/JPY continued to drop after the weekend open, and 76.567 has been broken.  The pair is currently testing the significant low at 76.392.  If the pair continues to break below these lows, there could be a very sharp drop.  However, there is also a chance that one of these levels will provide support, especially if there is intervention.  Therefore, it is too early to watch for a continued drop, but a move below 75.50 would be very bearish.

No trade.

The USD/CHF finished its third straight week down.  This has only happened one other time since the pair broke above the bearish trend line on the Weekly Chart.  The last time it happened, the pair rallied right back up and move was a brief pullback.  So, it is not surprising that we have seen a small pullback early this week.  However, if the pair makes a new low below this week's close, it could indicate that the pair may be in for a deeper retracement down this time.

We also have drawn a new bearish trend line on the 4hr Chart, but it is very weak since there are only two points of contact.  A third point is being tested, but it isn't lined up perfectly with the first two.  The trend line could still work, but we would probably need another perfect test.

No trade.

Yesterday's trade idea was invalidated before reaching our entry.  Meanwhile, the USD/CAD has seen resistance off of the broken bullish trend line on the Daily Chart.  It is not surprising to see broken support generate new resistance.  The drop from this point has led to the creation of a strong bearish trend line on the 8hr Chart.  The trend line already has three points of contact, so we will continue watching for patterns that would allow us to go short near the trend line.

No trade.

The AUD/USD broke through the third test of the bearish trend line on the Daily Chart, and actually generated new support after the break out.  Therefore, the focus will continue to be on the 8hr Chart bullish trend line.  Another new bullish pattern may be in the early stages of developing, so tomorrow there may be a nice opportunity to go long near the trend line.

No trade.

The NZD/USD has seen a perfect fourth test of the bullish trend line.  Unfortunately there was no pattern that allowed us to go long at this test, but it is still advantageous to have yet another successful test.  Now we have a very strong bullish trend line to work with.  We will watch for a new bullish patterns to emerge that would allow us to go long near the bullish trend line. 

However, the pair is also testing the  significant high at point X on the Daily Chart.  Therefore, either significant high or the bullish trend line will have to break in the near future.  If point X holds and the pair ends up breaking below the trend line, then we will reverse our view and watch for bearish patterns to emerge.

No trade.