USDCHF tests important support
 

(Click on image to enlarge)

The Swiss franc is poised for a bounce as prices slide lower. Any chance of a turnaround needs a jump above the psychological level of 0.8000 to send a strong signal that buyers remain in the game. As the RSI flirts with the neutral area, 0.7960 will be the first level to expect some firm resistance. A dip lower will need to break 0.7900 at the previous swing low, and 0.7860 at the recent false spike is the last line of defence to prevent a deep correction.
 

GBPUSD beginning to rebound
 

(Click on image to enlarge)

Cable received a boost as the recovery began to take shape after bouncing off the 1.3300 level. On the chart, a move above 1.3350 would further put sellers on the defensive, and 1.3460 is the next level to see if buying interest has returned. On the downside, 1.3320 is the first hurdle to clear, and the monthly low at 1.3260 is a major floor to break before a meaningful downturn can take shape.
 

USDJPY grinding lower
 

(Click on image to enlarge)

The Yen continues to gain traction against its rival as price action falls away from the recent peak. The dollar’s pullback below its previous consolidation at 152.00 has dented further buyer momentum. Sentiment for the greenback remains widely optimistic, as it remains in a bullish mood. However, today’s Fed decision could shake the market even further. On the downside, 151.50 is the closest support, and 150.00 is a critical level to prevent a deeper correction.

More By This Author: