JIM CHOREK, TECHNICAL ANALYST, CHOREK.COM

EURO/DOLLAR: The five-wave structure from $0.9120 ended earlier than I anticipated. My ideal target zone was in the $0.8883/2 area, but the advance from $0.8933 pushed above $0.8993, confirming the five-wave decline. The subsequent move above the $0.9000 risk level ended our focus on bearish opportunities. But, while the gains from $0.8933 have been sharp, it is important to note that they come back on rumors (China possibly shifting a portion of reserves from dollars to euros) and are therefore suspicious. Also, the rebound has thus far halted just in front of key resistance at $0.9049. This level marks the .618 retracement of the $0.9120-$0.8933 five-wave decline in wave (i). So, it's back to focus on bearish opportunities in front of this resistance with risk above $0.9076 (.764). Look for a move below $0.8976 (.618 of gains from $0.8933) to confirm the bear's return.

DOLLAR/SWISS: "The rally from 1.6365 didn't make it to the 1.6563/66 ideal target area instead topping at 1.6472. The break of the 1.6365 congestion low confirmed the 1.6472 top, driving the market toward the 1.6256 support. This level marks the .618 retracement of the 1.6123-1.6472 five-wave pattern. Look for a bottom in this area, with risk on bullish opportunities below 1.6205 (.764). A move above 1.6350 (.618 of 1.6472-1.6153) will confirm the bull's return, opening the door for a run at 1.6472.

STERLING/DOLLAR: "The 1-week cycle is still in its bust phase, but the rise above the 1.4612/15 resistance pushes me to the sidelines. There's still a chance that the rise from 1.4506 is an wave, or possibly even a ((b)) wave. But, for now, it's too difficult to call. Only a move above 1.4682 (wave A) peak would signal a full resumption of the bull in wave C. On the other hand, a move below 1.4555 would signal a continuance of wave B. So, between 1.4682 and 1.4555, this market is in limbo.

DOLLAR/YEN: The bear trend continues to sink to new lows, currently threatening the 120.71 reaction low. Penetration there will allow the bear to take aim at the 120.42 reaction low. Penetration there would open the door for a move toward the 119.58 (reaction low) to 118.65 (.618 of 115.75-123.35) major support zone. The 121.19/26 (reaction high) should continue to cap any recoveries.

ANDREW CHAVERIAT, TECHNICAL ANALYST, BNP PARIBAS
STERLING/DOLLAR: Trudging higher this summer off the June low, the 11-cent cable advance was well defined by the June-October upchannel from $1.3685-1.4845. In early-October, the breakdown of this June upchannel triggered a sharp but swift decline to $1.4200 correcting 56 percent of the rise in just 12 trading days. Swift 50% downside retracements have a tendency to be temporary corrections to the predominant trend, which are eventually fully offset by the subsequent rise. If so, the current rebound off $1.4200 could very well retest $1.4845. Whether it can substantially move above $1.4845 in the next few months is debatable.

"Fibonacci retracement point at $1.4690 offering pivotal resistance. The $1.4845-1.4200 October selloff has been retraced with last week's rise to $1.4680 constituting a 74 percent retracement -- very near resistance at $1.4690 from the 76.4 percent retracement point of the October selloff. Retracements can extend as far as 76.4 percent before stalling; exceeding 76.4 percent typically leads to a complete 100 percent retracement. In this instance, expect good selling interest around $1.4690, as this trade offers a low-risk set-up (with a tight stop loss above $1.4715, close-basis) with potential back down toward the $1.4200 October low."