GBP/USD has started to erode its one year uptrend at 1.6096/78. It has held its initial test f its 50% retracement of the move higher seen this year. This is located at 1.6054. While this may prompt a small rebound, we look for the downtrend at 1.6236 to cap rallies leaving overall pressure on the downside. We target 1.5935 then the 55 week ma at 1.5700.
EUR/USD has started to erode its 200 week moving average at 1.4000. Near term risks remain on the downside following the bearish outside day posted on Friday. Initial resistance is found at the short term resistance line at 1.4245 however a negative bias will persist while capped by 1.4345.
USD/CHF has started to erode its 3 month downtrend, currently at .8881. This is exposed and there is scope for the move to break higher to .8982/9021 the 38.2% retracement of the move down from February, the 11 month resistance line and the 55 day ma. This is expected to provoke initial failure.
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