The four majors are finally taking a break. It seems the spirited rise in the US Dollar needs to rest for a bit before taking on further gains. The Dollar isn’t really where it is based on sound economics. Sure oil is lower and it’s going to be cheaper for us drive around for the next few weeks, but don’t count on this lasting. I am not a Dollar Bear, but I am not a Dollar Bull right now either. I think we are where we are because everyone else’s horrible economy is catching up with ours. This led to a bit a balance happening. I think from these levels we’ll need to see solid fundamentals for further gains.

EUR/USD

Finally settling below resistance the pair is ready to get to work on the down side. The 15 min GaP is reset to low levels and ready for a new test in either direction. As far as the top side is concerned, 1.5277 is the first Fibo retracement. The down side would set the range for the next few weeks above 1.4441. The initial test to the top side could be a spectacular failure and 1.4441 could print before a top side test is attempted.

GBP/USD

The 15 min chart GaP has not reset to the bottom side yet. Currently it sits at 136 and is testing the lows from overnight at 1.8967. GBP just wants to give it up to the USD and it seems there’s nothing to stop the fall. The rate of the decent is decreasing, but the hourly rate of decent is still pretty steep. The one good technical pointing to a stop is that RSI is converging; however the latest buy signal on the hourly GaP suggests a little more strength left in the move.

USD/JPY

Who would have thought that the 110.00 bar would be so hard to hang on to? It seems just a slippery as the high bar was during the US Olympic trials. This point needs to hold or a test of the ascending support line will come sooner or later. The top side still looks like 114.00 and should the bottom fall out then 108.00 first is pressured then the 106.00 area.

USD/CHF

Last night’s move to 1.0924 completed the move to the top of an ascending channel drawn from the bottom created off the lows from 3/17 and 7/15. The move lower will be confirmed by a break of the red line and the move higher would need a reset of the daily technical’s.

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