The GBP/USD has seen a bit more strength than its mainland cousin over the past 24 hours, with rates ticking briefly above 1.5300 yesterday. As of writing, the pair has pulled back to the mid-1.5200s, and key support remains near the weekly lows around 1.5200. As we have all week, we continue to favor sell trades, though the stop sell order highlighted in  yesterday’s Candlestick Daily report is now unlikely to enter and has been cancelled. Our preferred strategy would be to sell bounces into the mid-1.5300s if seen. Stay tuned to FX360 and our daily Live Market Analysis webinars for any updates or new trade ideas later today.

The USD/JPY remains essentially unchanged from its price of 24 hours ago, despite a rash of negative U.S. economic data and the announcement of more financial reforms from Japan. The 1.0300 round handle continues to act as a “lighthouse” for the pair, warding price away anytime it gets close. Moving forward, we will watch for volatility to pick up around today’s Consumer Sentiment report and a possible pullback toward 102.00 on profit-taking ahead of the weekend. Stay tuned to FX360 and our daily Live Market Analysis webinars for any updates or new trade ideas later today.

The USD/CHF bounced off key support at the .9600 level yesterday (though unfortunately, not before dipping just low enough to stop out the buy trade highlighted in yesterday’s Live Market Analysis webinar!). As of writing though, the bounce has lost steam ahead of the .9700 round handle and shows early signs of a potential pullback, including a Bearish Pin Candle on the 4hr chart.  For today, the .9600 level should continue to support rates on any pullbacks, though resistance around .9700 may put a near-term ceiling on any rallies. Stay tuned to FX360 and our daily Live Market Analysis webinars for any updates or new trade ideas later today.

The USD/CAD broke out to new 3-week highs yesterday, surging through previous resistance near the Monthly R1 Pivot at 1.0220. A large Bullish Marubozu candle foreshadowed the breakout  and further gains to come in today’s early European trade, a development which has now emerged. At this point, the pair has room to run up to test the 2-month high around 1.0285 next, and buy opportunities will be favored ahead of the weekend.

One way to play the breakout is to set a limit buy order at 1.0230 (just ahead of previous-resistance-turned-support at 1.0220) with a stop at 1.0195 (back below the 1.0200 round handle) and a target at 1.0275 (ahead of previous resistance at 1.0285).

The AUD/USD broke to new lows over the last 24 hours after showing some tentative signs of bouncing yesterday. The pair has not dropped an incredible 650+ pips since the beginning of the month as traders abandon their carry trades en masse. While the natural temptation is to look for a countertrend bounce, the pair may actually set further lows before finding a floor. The daily chart shows the next major level of previous support is not until down around .9600; while rates certainly aren’t guaranteed to reach this level, it does show scope for further drops next week. Stay tuned to FX360 and our daily Live Market Analysis webinars for any updates or new trade ideas later today.

The NZD/USD followed its larger antipodean brother lower, trading down to the round .8100 handle in today’s late Asian session trade. As with the Aussie, we certainly could see a profit-taking bounce ahead of the weekend, but we are not a major support level yet. The next areas to watch on NZD/USD will be previous support at .8050 and key psychological support at .8000. Stay tuned to FX360 and our daily Live Market Analysis webinars for any updates or new trade ideas later today.