The loss of upside momentum saw EUR-USD tumbling ahead of its strong overhead resistance zone at 1.3831/38 Wednesday, increasing risk of reversing its entire recovery gains and targeting the 1.3584/30.

If the latter support is violated, EUR will resume its medium-term downtrend toward its .61 Fibonacci retrace/May 18 low at 1.3422/09. The risk to this view will be a return back above the 1.3778 level.

GBP-USD

is also on the same path, turning lower ahead of the 1.5830/51 levels today. This development has left downside risk toward the 1.5610 level, with a break of there turning the pair further lower toward its 2010 low at 1.5532. Resistance is at the 1.5814/30 levels.

AUD-USD

is now seen weakening after failing to hold on to gains at the 0.9035 level. Though retaining most of its recovery gains from the 0.8576 level, threats of further declines are now seen toward the 0.8924 level. To prevent its current downside weakness, the pair must break and hold above the 0.9035 level.

EUR-GBP

has reversed its Tuesday gains as price failure at 0.8740 saw the cross selling off today. Attention has now turned toward the 0.8656 level and then the 0.8601 level.

USD-JPY

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is currently seen building on its Tuesday gains, trading to as high as 91.15 level today. Risk is now pointing toward the 91.27 level, and it's falling channel resistance at 91.57.

Although

USD-CAD

is currently seen strengthening following its weakness off the 1.0779 level, its broader medium-term downtrend remains intact for a move lower toward the 1.0411 level and then the 1.0204/19 levels. Above the 1.0779 level must be traded to avoid its current downside pressure.

EUR-JPY

is now on the defensive as the bears restrain bulls after testing a high of 124.83 today. With this development, we believe the cross should push further lower, toward the 122.29 level.

Mohammed Isah is a technical strategist and head of research at FXTechstrategy.com, a technical-research Web site. He has been trading and analyzing the foreign exchange market for the past seven years. He formerly traded stocks before crossing over to the forex market, where he worked for FXInstructor LLC as a technical analyst and head of research before joining FXTechstrategy.com. He has written extensively on the forex market and technical analysis and his articles have been featured in The Technical Analyst Magazine, The Forex Journal Magazine, The International Business Times and FXstreet.com. At FXTechstrategy.com, he writes daily, weekly and long-term technical commentaries on currencies and commodities, which are offered to its clients. He also produces

The Professional Suite

for his subscribers. He provides full coverage of the forex market with specific focus on G10 currencies as well as the commodities markets, with focus on five key commodities.