FOREX TECHNICAL LEVELS

USDCHF immediate up-trend intact above 1.2434, Sep 14 low and as such, we anticipate a near-term break of Friday's 1.2625 high will yield an extension towards 1.2736, the 61.8% retracement of the 1.3241 to 1.1919 decline. Intraday support at 1.2485.

GBPUSD has failed to sustain the break of the 1.8906, 61.8% retracement of the 1.9094 to 1.8601 decline. Our focus remains on 1.8710, the low from Sep 13 and gateway to 1.8601, Sep 11 reaction low. A break of 1.8601 would confirm a resumption of the broader decline from 1.9146, Aug 8 trend high.

USDJPY has thus far failed ahead of the key 118.50 key trendline resistance. Initial support lies at 116.99, yesterday's low where a break would pave the way for deeper intraday losses towards the next key support at 115.56, Sep 5 low. On the upside we continue to monitor 118.50 where a successful assault is required to provoke extended gains towards 119.41, Feb 3 peak.

USDCAD the USD has cleared resistance at 1.1245, the 50% retracement of the 1.1460 to 1.1029 decline paving the way for a climb towards 1.1295, the 61.8% retracement. The pair has traded close to this level and a break would suggest potential for 1.1375, Aug 1 low ahead of 1.1460, July 24 high. Look for support to come in at 1.1165, yesterday's low.

AUDUSD maintains a bearish bias following the recent failure to sustain the break of 0.7717 and subsequent loss of 0.7551. This defined an interim high at 0.7721 from Sep 5 and paves the way for renewed weakness beyond last Wednesday's 0.7482 base en route to 0.7442, the 61.8% retracement level of the 0.7269 to 0.7722 advance and ultimately 0.7405, Jul 19 reaction low. Immediate heavy tone dominates below 0.7572, Sep 14 high and approximate 38.2% retracement of the 0.7722 to 0.7482 decline.

EURJPY Stalls At 150.27, Further Weakness Expected

EURCHF maintains a near-term bullish bias above last Thursday's 1.5830 low with current dips seen as a corrective setback. While 1.5830 holds, our focus remains on Friday's 1.5970 high and the psychological 1.6000 level thereafter.

EURJPY having rejected the 150.75 trend high from Aug 31, yesterday's sell-off from 150.27 is now pressuring Monday's 148.20 low. Failure to maintain a foothold above this level would trigger a deeper setback towards 147.55, Sep 8 reaction low.

EURGBP remains vulnerable near-term below yesterday's 0.6766 high, having stalled ahead of the 0.6831 level. Here Aug 21's reaction high coincided with the 61.8% retracement of the 0.6865 to 0.6720 decline. Accordingly, the focus is now back on major support at the 0.6720 double bottom - the gateway to 0.6704, Nov 10, 2005 base and ultimately 0.6610, Jun 23 base