EURUSD Daily Pivots
EURUSD (1.13): EURUSD is consolidating near the resistance level after a brief attempt to break above 1.13575 yesterday which was rejected. Prices are back below the resistance level with a possibility of another test to the resistance level. We however expect the resistance to hold considering that another strong level of resistance sits at 1.142 region. Short term declines to 1.117 - 1.11 looks to be an increasing possibility and we expect EURUSD to range between the current highs and the lower supports into this Thursday's FOMC meeting which could offer a break out. On the daily charts, price formed a small bodied candlestick pattern just above the main daily resistance level of 1.12845 indicating a potential decline in the near term.
USDJPY Daily Pivots
USDJPY (120) USDJPY has been consolidating as well with no major prices moves so far. Price is however trading below the resistance level of 120.8 which could indicate a possible decline further. This is further confirmed by the potential bearish engulfing candlestick pattern that we see right now. In the short term, declines are likely to test the lower support at 119.10 but a break below this support could see USDJPY accelerate towards 117.25 level of support. On the daily chart, price continues to print lower highs below the recovery rally to the previous high at 121.5 region.
GBPUSD Daily Pivots
GBPUSD (1.54): GBPUSD has seen close to two days of consolidation after a rally towards 1.545 region. Yesterday saw a modest decline lower to retest the major falling price channel's trend line and the bias still remains to the upside with the possibility of a test to 1.5557 based on the bull flag pattern. However, the rally could be a bit of a stretch considering that the measured move of the bull flag sits above the previous strong resistance level. To the downside in the event of a decline below the price channel's trend line, 1.5323 could be tested which would invalidate the bull flag pattern.