EUR/USD looks mantaining Pressure below 1.2700

EURUSD continues to edge lower from 1.2834, Sep 22 high. This level now stands as yet another obstacle ahead of the cluster of resistance between 1.2868, the 76.4% retracement of the 1.2941 to 1.2630 decline and 1.2880, Aug 31 reaction high. Having already violated last Friday's 1.2775 low, we expect further downside towards 1.2708, the 61.8% retracement of the 1.2630 to 1.2834 advance.

USDCHF having held support at 1.2287, the 76.4% retracement of the 1.2183 to 1.2625 advance, the USD is now poised for a fresh assault on Friday's 1.2432 high ahead of extended upside towards last Thursday's 1.2545 high and ultimately Sep 15's 1.2625 top.

GBPUSD the risk of an intra-range setback is now more acute as sterling encroaches on the cluster of resistance between 1.9094, Aug 31 reaction high and 1.9146, Aug 8 top, but the immediate outlook remains constructive above the formerly resistant 1.8920 level.

USDJPY is expected to remain vulnerable near-term following the recent failure ahead of the key multi-year trendline resistance at 118.56. With short-term trend-line support originating form early August also cleared, the focus remains on 115.56, Sep reaction 5 low. Retain a negative near-term stance beneath 117.49, Sep 21 high.

USDCAD having rejected the 61.8% retracement of the 1.1460 to 1.1029 decline at 1.1295, looks set to take out support at 1.1118 from Sep 22 and downside trigger for 1.1029, Sep 1 reaction low. Maintain a bearish view below 1.1298, Sep 20 reaction high.

AUDUSD failure to make headway beyond 0.7582, Sep 21 high continues to weigh, with a break of 0.7482, Sep 13 low expected to yield further downside towards 0.7442, the 61.8% retracement level of the 0.7269 to 0.7722 advance and ultimately 0.7405, Jul 19 reaction low.