Forex Testing Support

Just a quick update on the Forex markets. If you look at the above chart, you will see that 3 out of the 4 major currencies are all testing key support levels. The Euro currency has returned to the breakout level and it's 50 day moving average. The British Pound is testing a gap that was left behind last month and the Japanese Yen is beginning to rally off the lows from October.

The strongest currency is clearly the British Pound and the Euro. If you are bullish, those are the currencies to be buying and this appears to be a good spot. If you are bearish, you would want to short the Japanese Yen on rallies or when the October support is taken out.