European currencies remain under overall downward pressure against the dollar, with the EURUSD below 1.0730/60 and the target held at 1.0537/06. The 1.2530/80 level on cable can be watched in parallel to keep the British currency in its short-term downtrend. The Swiss franc is also continuing the slide it began at the start of the year, heading quietly towards last October's highs of 0.9200/45.

Unsurprisingly, the scandies are no better off, as can be seen from the structure of the NOK and SEK. Upside potential lies at 11.27 and 11.20/25 respectively, even though the SEK has already reached an initial target of 11.00, which could trigger some initial sell-offs.

The Japanese yen remains weak and has resumed its downward momentum since breaking through the 151.90 level. Long-term targets are 162.20 before the 165.45/80 zone. As mentioned last week, caution is advised on this currency in view of the risk of intervention by the Bank of Japan.

In the commodity currencies, the Aussie has exited its horizontal consolidation channel at the bottom, pointing to a further decline towards 0.6280/50. On the other hand, USDCAD and the kiwi have already touched a first target at 1.3850 and 0.5865, from which a potential reaction could initially emerge.