As a follow-through higher on its hammer formation on Friday is now under way, we look for GBP-USD to build further corrective strength toward the 1.5532 level. Beyond there will clear the way for a run at the 1.5626 level and then the 1.5814 level, where a cap is expected to turn the pair back down. If our upside view fails, the 1.5343 level will be threatened.

We continue to expect

EUR-USD

to initiate a corrective recovery higher having failed to maintain below the 1.3530 level the past week. Though currently seen maintaining an offered tone, as long as it trades above the 1.3532/1.3442 levels, we see corrective recovery risk possibly toward the 1.3787 level. Support resides at the 1.3530/1.3442 levels.

USD-JPY

is currently seen weakening for a second day following its unsustained break above its long-term falling channel the past week. Risk on further weakness remains toward the 89.69 level and then the 88.54 level. Above the 92.13 level must be traded to reverse its current downside vulnerability.

USD-CAD

may be strengthening following its recent loss of upside momentum at the 1.0778 level, but while the 1.0530/44 levels cap, we look for the pair to head back down toward the 1.0219/04 levels.

Though price hesitation continues to be seen in

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AUD-USD

ahead of the 0.9035 level following its corrective recovery started at the 0.8576 level, as long as it trades and holds above the 0.8924 level, we look for a retarget of the 0.9035 level with scope for further strength toward the 0.9092 level.

EUR-JPY

continues to face bear pressure at the 124.73/37 level as it failed to sustain intraday strength and tumbled off the 125.22 level today. This development now leaves risk toward the 122.74 level. Above the 125.22 level must be recaptured to reverse its current offered tone.

EUR-GBP

continues to maintain its corrective to consolidation tone as it is currently weakening within its short-term trading range. The 0.8656 and 0.8601 levels come in as its downside objectives.

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.