After the G7 meeting the forex market opened with gap. EUR/USD tested the lower boundary of the ascending triangle but couldn’t break below so the pattern is still intact. Euro was pushed up by strong Mid Eastern names buying. Probably the Asians and Russians will test the patience of the central bankers and this week we can see a test of the 1.60 handle. What will be the outcome? No one knows. Let;s wait and see. Until then, be very careful and don’t leave long euro positions without stop.

EUR/USD shows signs of exhaustion. Two inside days and two candlesticks reversal patterns form just below the previous high – haramii and hanging man. If support @ 1.2725 is broken next downside target is 1.5660, then 1.5340. Possible double top.

GBP/USD broke the downtrend line after the stronger than expected retail sales data from last week. Technical picture looks now constructive but for uptrend we can talk only after we see a daily close above 1.9960. First support is @ 1.9740.

GBP/USD is in clear downtrend. Three days ago the market confirmed the downtrend line and started new leg lower. If it breaks below 1.9335 the next target is 1.9180 and then the lower band of the downtrend channel currently aroung 1.8910.

If the EUR/USD breaks breaks lower we can see dollar strength across the board which can spill over to USD/JPY also. Very important is the  107.92 resistance level. If this  resistance gives way  the rally could extend to 110.10 and even 111.oo.

After the surprisingly negative NFP report the EUR/USD was unable to overtake the life time high and a sell off followed helped by the positive surprise ind the ISM index. The volatile price action formed a bearish reversal Evening star pattern. If in the next few days the market breaks and closes below 1.4755 the short term picture will be positive for the dollar. It will be helped by the declining technical studies.

EUR/USD is in range for the last 3 months. Technically the uptrend is still intact, but the fundamentals are changing. Almost all the bad news for the US economy are priced in. Everybody knows that the FED will continue to cut rates. The question now is when will see the spillover effect of the subprime crisis to the EU economy. First support is 1.4650, then 1.4510. If the market breaks below 1.4310 it will form a double top on weekly chart with target around 1.37. First resistance is 1.4780, the 1.4920. If the market breaks the all time high @ 1.4967 the magical 1.5000 will be difficult to overcome for the run towards 1.5200. The big guys know their game and probably the Big figure will be broken some Sunday night.

EUR/USD broke below the 1.4590 support. Technical indicators are in negative territory. Next downside targets are 1.4310, 1.4120, 1.4010.

GBP/USD chart looks bearish as it can be, but the bears should sell with some caution. Some indicators show divergence and the Slow Stochastics is breaking up through the signal level. A correction towards 1.9750 is possible before the next leg down to the 1.9180 support.

Russian names sales helped the GBP/USD to break strong support @ 1.9650 and reazh 9 mont low against the USD and new life time high against EUR. Next support is 1% MA envelope @ 1.9600 and the daily Bollinger band @ 1.9510. If BoE cuts the rates tomorrow expect further weakness although the oversold conditions.