EUR/USD is approaching the 61.8% retracement resistance at 1.3739, (of the move down from November to January). This together with 1.3789, the 22nd November high is likely to provoke some profit taking. We would allow for the possibility of a slide back to 1.3500/1.3346 (the December high and 20 day ma), but suspect that we may see another upswing from here.

USD/CHF has sold off to .9405, the 78.6% retracement (of the rally higher seen in January). It is attempting to stabilise here, but will need to regain .9568, the 20 day ma in order to alleviate immediate downside pressure. This support at .9400/05 is considered the last defense for the .9318/00 support (recent low and 15 year support line).

GBP/USD charted an inside day yesterday, attempting to stabilise following Tuesdays sharp sell off. The market has recently failed at resistance at 1.6090/95 (78.6% retracement of the move November to December) and sold off aggressively. Initial downside target of 1.5717/03, the 55 day ma and 50% retracement and we may again see some consolidation here. We favour eventual failure however and further weakness to 1.5500 then 1.5464, the 200 day ma.