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Bitcoin is trading above 10000, confirming its upward trend and approaching resistance at 12130 (18/01/2018 high). Strong support remains at 5605 (13/11/2017 low). The short-term technical structure suggests further upside moves.

In the long-term, the digital currency has had an exponential growth but also presented important downturns. There is decent likelihood that the currency could stabilize between 7'000 - 12'000 in 2018. Bitcoin is trading above its 200 DMA (6'500 range).

EUR/CHF is trading sideways at the 1.15 range. Hourly resistance is at 1.1685 (26/01/2018 high) while strong resistance remains at 1.1833 (15/01/2018 high). Hourly support is given at 1.1388 (02/10 2017 low). The technical structure suggests further short-term sideways moves.

In the longer term, the technical structure has reversed. Strong resistance is given at 1.20 (level before the unpeg). Yet, the ECB's slowing QE program is likely to cause buying pressures on the euro, which should weigh in favour of the EUR/CHF. Support can be found at 1.0234 (20/04/2015 low).

EUR/GBP is maintained close of hourly resistance at 0.8929 (12/01/2018 high). Hourly support at 0.8687 (25/01/2018) remains distant. The technical structure suggests further shortterm sideways move.

In the long-term, the pair has largely recovered from 2015 lows. The technical structure suggests further upside pressure. The pair is trading above its 200 DMA. Strong resistance can be found at 0.9500 (psychological level) while support remains at 0.8304 (05/12/2016 low).

AUD/USD is slightly falling after its short-term bullish momentum and remains near hourly resistance at 0.7999 (17/01/2018 high). Hourly support remains at 0.7638 (15/12/2017 low). The technical structure suggests further short-term upside moves.

In the long-term, the upward trend resumes after failing to reach key resistance at 0.8164 (14/05/2015 low). Key support stands at 0.6009 (31/10/2008 low). A break of the key resistance at 0.8164 (14/05/2015 high) is needed to invalidate our long-term bearish view.

USD/CAD gains strength back after slowing down its descent. The pair heads toward the range of 1.26. Hourly resistance is maintained at 1.2748 (24/11/2017 high) and support is given at 1.2251 (31/01/2018 low). The technical structure indicates that further short-term rise is expected.

In the longer term, the pair is trading between resistance point at 1.3805 (05/05/2017 high) and support at 1.2128 (18/06/2015 low). Strong resistance is given at 1.4690 (22/01/2016 high). The pair is likely to head lower. The pairs is trading below its 200 DMA.

USD/CHF ended its short-term downward trend, heading for further rise along 0.93. Hourly resistance stands at 0.9559 (24/01/2018 high) while further resistance remains at 0.9668 (17/01/2018 high).

In the long-term, the pair is still trading in range since 2011 despite some turmoil when the SNB unpegged the CHF. Support at 0.9259 (24/08/2015 low) is now reached. Key support remains at 0.9072 (07/05/2015 low) while resistance at 1.0344 (15/12/2016 high) is distanced. The technical structure favours a long term bullish bias since the unpeg in January 2015.

USD/JPY is recovering and heading above 106.50. Hourly resistances at 111.50 (18/01/2018) and 113.75 (12/12/2017 high) remain far. The technical structure suggests short-term upside moves.

We favor a long-term bearish bias. Support at 105.55 (03/05/2016 low) is almost reached. A gradual rise toward the major resistance at 125.86 (05/06/2015 high) seems unlikely. Expected to decline further support at 101.20 (09/11/2016 low).

GBP/USD is bouncing down, heading below 1.40 range and heading for 1.3742 (16/01/2018 low). The technical structure suggests further upside move.

The long-term technical pattern is reversing. The Brexit vote had paved the way for further decline but the pair is moving to 2016 highs. Long-term support and resistance are given at 1.1841 (07/10/2017 low) and 1.5018 (24/06/2016 high).

EUR/USD is decreasing after its break of resistance at 1.2537 (25/01/2018 high). Heading toward 1.23 range. Hourly support at 1.2165 (17/01/2018 low) is approaching. The technical structure suggests further downside moves.

In the longer term, the momentum is turning largely positive. We favor a continued bullish bias. Key resistance is holding at 1.2886 (15/10/2014 high) while strong support lies at 1.1554 (08/11/2017 low).

For now follow the USD bears

Today's play is to buy risk, sell volatility. January's Open Market Committee meeting of the US Federal Reserve, minute of which will be released this week, should show confidence in US economic growth. The decline of the VIX volatility index and the recovery in equities has offset concerns of slightly higher interest rates.

Yet we will not be lulled into complacency. When the European Central Bank and the Bank of Japan start “normalization”, this will likely trigger a sustained, extended correction that bears expect. We see additional volatility through September. US fiscal spending will accelerate, thanks to the Bipartisan Budget Act of 2018 which will boost federal outlays by $67.9 billion in 2018 and $184.3 billion in 2019. This could push the Fed to tighten faster, increasing the risk of a hard landing in the USA.

Tokyo, Sydney and S. Korea continue their expansion

Japanese equities continue their expansion on Monday. The TOPIX ended the day at 1775 (+2.17%) following strong decrease of -7.09% two weeks ago, supported by Real Estate (+2.79%), Utilities (+2.44%), Industrials (+2.34%) and Materials (+2.04%). The technical structure of the index suggests further short-term rise toward hourly resistance at 1803 (07/02/2018 high). The Nikkei 225 also closed higher, heading above 22K at 22149 (+1.97%) and heading toward hourly resistance at 22354 (07/02/2018 high).

Stocks in Sydney and South Korea ended the day in positive territory, with the S&P/ASX 200 at 5942 (+0.64%) and the Kospi increasing up 0.87% at 2443, while Hong Kong and China remain closed for holiday.

This week we will be looking at Australia Reserve Bank Meeting Minutes (Tuesday) and US FOMC Meeting Minutes (Wednesday), both giving the tone on markets for the coming days.