EUR/USD
Momentum continues to increase to the upside with the 20-day simple moving average sloping higher. As such, traders should favor trades in that direction. A bullish channel has formed on the daily chart, beginning at the September 12th low. Traders should target the upper line of the channel which coincides with the March high of 1.3820.

GBP/USD
Traders should be cautious with the pair following yesterday's selloff. The long red candlestick follows three days of consecutive doji candlesticks. The halt in the uptrend occurs at 1.5870 which coincides with the 61.8% Fibonacci retracement level from the November 2009 high. All of this may signal a reversal of the trend or at least a period of a consolidation.

USD/JPY
A distinct declining wedge pattern has formed on the monthly USD/JPY chart that could signal a reversal of the downward trend. As the long term trend is clearly to the downside, traders will need to be extra patient before taking a long position and wait for a clear signal that a breakout to the upside has occurred. This month the price could test the resistance level at 90.80. A close above this on a monthly basis would confirm the breakout. However, there is always a chance the pair will continue to the downside. Traders should eye a breach below the 82.80 level for a sign of a continuation of the downtrend.

USD/CHF
Two days of appreciation in the pair may present a sell opportunity to enter into the downtrend. The price of the pair rose as high as the 0.9840 level where it then proceeded to head lower. This may be the time enter short with a target at the 2008 low of 0.9632.

Crude oil
Crude oil is showing signs that momentum is to the upside. The 7-day Momentum indicator is sloping sharply higher and the MACD histogram is also rising. Yesterday the price breached above the resistance level of $80. Forex traders should be targeting the next resistance level at $83.00.

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