The downtrend on the USD/CHF continues. Downtrends present three possible entry opportunities: continuation, correction, or reversal. Due to the downtrend's strength it's very likely that a continuation and/or a correction (also known as a Retracement) will occur.

EUR/GBP

Current level - 0.8312

Longer term bias switched to bearish now that the cross has breached key support in 0.8400 area.

EURUSD Outlook

The EURUSD didn't make significant movement yesterday. The bias is neutral in nearest term but we are still in bullish correction phase as price is moving strongly inside the bullish channel as you can see on my h1 chart below.

EUR/USD closed higher on Thursday as it consolidates some of the decline off this month's high. The mid-range close sets the stage for a steady to higher opening on Friday.

EQUITIES

The US Equities ended higher in the later part of the session yesterday. Markets were up after some favourable housing and jobs data releases which lifted the investor confidence. The markets will be closely following the much awaited US NFP data, due later today. The Dow (10320.10) was up 0.49% and the S&P 500 (1090.10) was up 0.91%. While above 10000, we may see the Dow move up towards 10700-50 in the coming weeks.

The closely watched US non-farm payrolls are out today. Following a shock 131k fall in July, we look for a further 100k fall in employment in August. Nonetheless, consistent with the ADP employment figures out earlier this week, we expect private sector jobs rose modestly in the month.

USD/JPY 84.22

On Wednesday Dollar/Yen continued decreasing at first, in converse with the positive Interbank sentiment at nearly -80%, than recovered from the morning losses. The currency couple depreciated to 83.75 yesterday, from where it rose up to 84.61, closing the day at 84.43.

EUR/USD

Current level - 1.2821

EUR/USD is in a downtrend, after peaking at 1.5146 (Nov.25,2009). Technical indicators are descending, and trading is situated below the 50- and 200-Day SMA, currently projected at 1.3458 and 1.4206.

EURO: The Euro (1.2788) shooted up to as high as 1.2855 levels in yesterday's US Session post the data release from the US increasing the risk appetite in the market. It broke past its resistance of 1.2780 as short covering builded up as it consolidates some of the decline off this month's high. Support continues to be at 1.26 whereas the resistance is seen near 1.2840 levels(55 Daily EMA). Today's ECB is expected to leave the interest rate unchanged. Medium term tone: Overall bearish.