EUR/USD charted an inside day to leave our outlook unchanged. We remain unable to rule out a further small bounce, but we expect this to remain fairly tepid. The market has recently charted an outside day to the downside (Friday), and a key week reversal. Intraday rallies will find resistance at 1.4341 and should now remain capped by 1.4425/65.
USD/CHF is stalling below the 3 month downtrend at .8930. While we would allow for a small pullback from here, we look for dips to find support at .8800, .8715.
GBP/USD is attempting to rebound from the underlying support offered by the 1.6155/1.6074 band. This is the location of the one year uptrend at 1.6067 and the 23.6% retracement of the entire move up from May 2010.
USD/JPY is at last showing some signs of life, it has rallied higher to reach the 38.2% resistance at 81.85. This is encouraging and adds weight to the idea that the market is attempting to stabilize at the 80.00/79.80 support.
Karen Anne Jones,
Commerzbank Corporates & Markets