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EUR/CHF is trading slightly higher. Hourly resistance is given at 1.1778 (25/12/2017 high). Expected to show continued short-term increase.

In the longer term, the technical structure has reversed. Strong resistance is given at 1.20 (level before the unpeg). Yet, the ECB's QE programme is likely to cause persistent selling pressures on the euro, which should weigh on EUR/CHF. Supports can be found at 1.0184 (28/01/2015 low) and 1.0082 (27/01/2015 low).

EUR/GBP is trading higher. The pair is trading between support at 0.8689 (08/12/2017 low) and resistance is located at 0.9046 (14/09/2017 high). Expected to show further increase.

In the long-term, the pair has largely recovered from recent lows in 2015. The technical structure suggests a growing upside momentum. The pair is trading above from its 200 DMA. Strong resistance can be found at 0.9500 (psychological level).

AUD/USD's upside pressures are growing. Hourly resistance given at a distance at 0.7897 (13/10/2017 high) has been broken. Support stands at 0.7808 (09/01/2018 low). The road is wide open for further upside.

In the long-term, the trend is turning positive. Key supports 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 has bounced back after the pair reached hourly support at 1.2356 (05/01/2018 high). Expected to show renewed short-term weakness.

In the longer term, the pair has broken longterm support that can be found at 1.2461 (16/03/2015 low). Strong resistance is given at 1.4690 (22/01/2016 high). The pair is likely to head further lower.

USD/CHF is trading lower. Hourly support given at 0.9700 (02/01/2017) has been broken. Expected to show further short-term downside moves.

In the long-term, the pair is still trading in range since 2011 despite some turmoil when the SNB unpegged the CHF. Key support can be found 0.8986 (30/01/2015 low). The technical structure favours nonetheless a long term bullish bias since the unpeg in January 2015.

USD/JPY's selling demand is pushing lower and the pair has broken hourly support given at 110.84 (27/11/2017 low). Hourly resistance can be found at 113.75 (12/12/2017 high). The technical structure suggests further short-term downside moves.

We favor a long-term bearish bias. Support is now given at 99.02 (10/08/2013 low). A gradual rise towards the major resistance at 125.86 (05/06/2015 high) seems unlikely. Expected to decline further support at 93.79 (13/06/2013 low).

GBP/USD is trading on an uptrend bias. The technical is highly positive at the moment. Hourly support is given at a distance at 1.3458 (11/01/2018 low) while strong resistance at 1.3764 (15/01/2018 high) is being monitored.

The long-term technical pattern is reversing. The Brexit vote had paved the way for further decline. The pair has set up a long-term support given at 1.1841 (07/10/2017 low). A reversal is currently happening. Strong resistance is given at 1.5018 (24/06/2016 high).

EUR/USD keeps on increasing since the beginning of 2018. The pair has strongly bounced back and reached further its former resistance point at 1.2092 (08/09/2017 high). Hourly support at 1.1718 (12/12/2017 low). Stronger support is given a distance at 1.1916 (09/01/2018 low).

In the longer term, the momentum is now turning largely positive. We favour a continued bullish bias. Key resistance is holding at 1.2856 (15/10/2014 high) while strong support lies at 1.0341 (03/01/2017 low).

WTI oil is consolidating under new high at $64.75 (the highest since late 2014, posted last week) on Monday and holding strong bullish sentiment.

Ongoing efforts from major world oil producers to reduce the output and reduce global oversupply are giving good results and keep the oil price supported.

WTI contract has completed four bullish weeks, with signs of further advance, however, overbought conditions on daily/weekly chart continue to warn of corrective action. No firmer bearish signal being generated for now which keeps the price within narrow consolidation.

Friday's low at $63.05 marks initial support, followed by more significant rising 10SMA ($62.66) violation of which would generate stronger bearish signal. Today's trading could see lower volumes as the US will be shut for market holiday.

Res: 64.58, 64.75, 65.00, 65.88
Sup: 64.08, 63.91, 63.68, 63.05

Dollar is oversold

Major currencies' valuations should correlate to their yields, but lately they are diverging. Most G10 currencies are significantly above what yield differentially would suggest. Last week's hawkish comments of the European Central Bank pushed EUR/USD above 1.20, its highest since the ECB started its quantitative easing.

Markets underestimate the US Federal Reserve's commitment to stay ahead of inflation. As consumer prices increase – more quickly than is generally expected – interest-rate correlations will snap back into place, forcing a USD rally, especially against JPY, EUR and CHF.

EU and Euro are strong

Uncertainties about a German government coalition and the European Central Bank's monetary policy stuttered the Euro mid-last week, but it recovered as a those worries faded. News arrived of a likely German agreement, while industrial, retail, trade and GDP figures all reported strongly, pushing the EUR/USD pair to the 1.22 range.

US markets remain on a roll. Inflation is finally reviving, and rumours that China will stop buying US treasuries appear to be unsupported.