Each day following the New York close, a short term technical update will be published for the day ahead. The best short term opportunities for tomorrow are short USDCAD and short USDJPY. The regular technicals are published lower on this page under Daily Technicals.
A 4th wave is most likely underway from 1.4814 as either a triangle or a flat. Expectations are for the advance to reach at least 1.5083. Keep in mind that this rally should be countertrend. A drop below 1.4814 would suggest that a 5th wave from 1.5083 is extending.
The USDJPY should continue lower near term to at least 107.86 (38.2% of 103.76-110.40). Former support at 109.60 is now resistance.
The GBPUSD has fallen for 8 straight days now and today may be the ninth. On very short term charts, the decline seems to be subdividing. The bearish bias is intact as long as price is below 1.9082. Below 1.88 is the next objective.
The USDCHF is testing the topside of a short term channel. Expect a decline to at least 1.0741 near term.
Very short term, the USDCAD has decline is in 5 waves. This warns of a top at 1.0726 (at least short term). There is an opportunity to sell against 1.0726 and wait for a deeper decline to materialize over the next few days.
The Kiwi is no different from the AUDUSD. Both pairs are extending declines. The Kiwi is bearish as long as price is below .7011 and an objective is at .6766.
Tell us what you think about this report: contact the strategist about the article at jsaettele@dailyfx.com
