The majors began to recover against the USD today, which should continue into tonight and tomorrow.
Technical outlooks for the majors are released twice a day. The morning version is released around 8:30-9:00 am EST and the evening version is released around 6:00 pm EST.
The NZDUSD may have already bottomed (temporarily). .6970 should serve as strong short term support. Over the next few days, the NZDUSD is expected to work higher into the .72-.74 zone.
We wrote yesterday that “very short term, the USDCAD has declined 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.” After a deep retracement in wave 2, the USDCAD has come off and closed near the low of the day. Expect a drop into the 1.0550 zone.
Our focus near term is on the topside of a short term channel. The line continues to hold. Expect a decline to at least 1.0741 near term.
The GBPUSD has fallen now for 9 straight days. A temporary low may be in place at 1.8639. If so, then expectations are for a corrective advance to at least the 1.8920-1.9034 zone.
After breaking a short term support line, the USDJPY just as quickly reversed and is now testing the underside of the former support line. We still favor a deeper decline from 110.40, into the Fibo zone of 106.30-107.86. As such the advance from 108.36 could be wave B in a correction from 110.40. Resistance is at 110.00.
There is no change from yesterday. “A 4th wave is most likely underway from 1.4814 as either a triangle or a flat.” If wave 4 is a triangle, then the price extreme is already in place at 1.4981. If a flat is unfolding, then the EURUSD will exceed 1.4981. 1.5083-1.5153 is resistance.
