Forex Technical Levels

EURUSD violation of 1.2572, Oct 6 low and approximate 76.4% retracement of the 1.2456 to 1.2941 advance reinforces down-trend and exposes further downside towards 1.2456, Jul 19 reaction low. Failure to maintain a foothold above this level would signal a departure from the Summer range an unlock 1.2403 and 1.2266, the 50% and 61.8% retracements of the 1.1825 to 1.2980 advance respectively.

USDCHF is expected to extend recent gains with 1.2736, the 61.8% retracement of the 1.3241 to 1.1919 decline tested. A clear break of this level would pave the way for a climb towards, 1.2929, the 76.4% retracement. Near-term support resides at Monday's 1.2590 low, but weakness below 1.2404, Oct 2 base would be necessary to threaten the broader advance.

GBPUSD loss of 1.8601, Sep 11 low adds credence to the topping prospect and unlocks 1.8493, the 61.8% retracement of the 1.8090 to 1.9146 ascent. The immediate tone is negative below Monday's 1.8715 top. A break of 1.8493 would expose 1.8385, the Jul 26 low.

USDJPY with momentum conditions continuing to provide a positive backdrop, yesterday's break of 119.41, Feb 3 high sets the scene for a move towards the psychological 120.00 level, but with scope for 121.41, Dec 5, 2005 peak thereafter. Intra-day support cuts in at 118.82, Monday's low, but we recommend a bullish stance above 117.38, Oct 3 low.

USDCAD sequence of higher highs and higher lows remains intact and with the with momentum conditions also providing a positive backdrop, further gains are expected towards 1.1460, the July 24 high. Initial support this morning lies at 1.1308, the Oct 4 high.