The GBP/USD pulled back to bullish trend line support overnight before following the euro higher in early European session dealing. From a candlestick perspective, the pair just put in a Bullish Marubozu Candle on the 4hr chart, indicating strong bullish momentum. With rates breaking above key previous / round handle resistance at 1.5800, there may be a chance to join in on the bullish momentum on a near-term pullback

Specifically, traders could set a limit buy order at 1.5805 (above support at 1.5800) with a stop at 1.5702 (below today’s low) and a target at 1.5885, just under the mid-November 2011 high).

The USD/JPY continues to grind lower, much to the chagrin of BOJ policymakers. From a technical perspective the pair appears to finding a modicum of support at the round 76.00 handle, but the bears seem determined to press the pair lower until the BOJ intervenes. More aggressive traders may want to look for long positions, speculating on potential intervention, but we will stand aside for now until the technical picture is clearer.

The USD/CHF bounced overnight before encountering stiff resistance near previous highs in the .9225. The pair has dropped sharply this morning and now sits directly in the middle of the past week’s range from .9115-.9225. As long as rates remain locked within this range, the near-term bias will remain neutral, but a close below this range would pave the way for further drops, potentially down to key psychological support at .9000.

The USD/CAD primarily consolidated yesterday after bouncing early in the North American morning. Now rates are showing signs that the downtrend has resumed, with the pair forming a clear Bearish Marubozu candle on the 4hr chart. Our short opportunity from yesterday triggered, leaving us short from .9990, and rates are now consolidating near entry. We remain bearish biased with room down to previous support at .9900 over the next few days. Stay tuned to FX360 for any trade updates that do emerge.

The Aussie pulled back perfectly to bullish trend line support overnight before rallying during today’s European session. Rates formed a Bullish Pin Candle off the trend line for the 5^th consecutive time, foreshadowing this morning’s rally. As of writing, rates are testing resistance at 1.0680, a level which has capped rates on 3 occasions in the past week. A break above this ceiling would turn the bias bullish for a test of 6-month highs near 1.0750. Meanwhile, any pullbacks that emerge from this barrier are likely to find support at the bullish trend line; stay tuned to FX360 and our daily Live Market Analysis webinars for buying opportunities if we do see the AUD/USD pull back once again.

The Kiwi also rallied during today’s European session after pulling back slightly overnight. The pair found a floor at previous-resistance-turned-support at .8240 before staging the rally and now appears set to break above round handle resistance at .8300. A break above .8300 would be very bullish and suggest potential for further rallies over the course of the day.