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For the 24 hours to 23:00 GMT, the EUR declined 0.54% against the USD and closed at 1.1968, after Germany's factory orders surprised with an unexpected drop in November.

On the macro front, Germany's seasonally adjusted factory orders unexpectedly fell 0.4% on a monthly basis in November, declining for the first time in 4 months and defying market expectations for a flat reading. In the prior month, factory orders had climbed by a revised 0.7%.

Separately, the Euro-zone's seasonally adjusted retail sales rebounded more-than-expected by 1.5% on a monthly basis in November, rising at its fastest pace in over a year, indicating that an upturn in the region's consumer spending may be on the horizon. In the previous month, retail sales had dropped 1.1%, while markets had expected for a rise of 1.3%. Moreover, the region's Sentix investor confidence index climbed to a level of 32.9 in January, topping market consensus for a rise to a level of 31.3, thus highlighting that optimism over the region's economic outlook continued at the start of the year. The index had registered a level of 31.1 in the previous month.

Other data showed that the region's final consumer confidence index was confirmed at a 17-year high level of 0.5 in December, compared to a revised flat reading in the previous month. Additionally, the region's economic sentiment indicator jumped to a level of 116.0 in December, reaching its highest level since October 2000, as strong economic performance across the common currency region continued to boost confidence amongst businesses and consumers. Markets had anticipated the index to advance to a level of 114.8, after recording a reading of 114.6 in the previous month.

The US Dollar advanced against its key currencies, after remarks from several top Federal Reserve (Fed) officials suggested that at least three interest rate hikes were on the table this year.

In economic news, data indicated that consumer credit in the US rose $27.95 billion in November, posting its largest increase in 16 years. Markets participants had expected consumer credit to rise by $18.0 billion, after recording a revised increase of $20.53 billion in the previous month.

In the Asian session, at GMT0400, the pair is trading at 1.1972, with the EUR trading a tad higher against the USD from yesterday's close.

The pair is expected to find support at 1.1940, and a fall through could take it to the next support level of 1.1908. The pair is expected to find its first resistance at 1.2020, and a rise through could take it to the next resistance level of 1.2068.

Trading trend in the Euro today is expected to be determined by the release of the Euro-zone's unemployment rate coupled with Germany's trade balance and industrial production data, all for November, set to release in a few hours. Also, the US NFIB small business optimism index for December and JOLTs job openings for November, both due to release later in the day, would be on investors' radar.

The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.

For the 24 hours to 23:00 GMT, the GBP trade flat against the USD and closed at 1.3569.

Macroeconomic data showed that UK's Halifax house price index recorded an unexpected drop of 0.6% on a monthly basis in December, declining for the first time since June 2017 and pointing to a slowdown in the nation's housing sector. The index had registered a revised gain of 0.3% in the prior month, while investors had envisaged for a rise of 0.2%.

In the Asian session, at GMT0400, the pair is trading at 1.3579, with the GBP trading 0.07% higher against the USD from yesterday's close.

Overnight data indicated that the nation's BRC retail sales across all sectors grew more-than-expected by 0.6% YoY in December, compared to a similar rise in the previous month.

The pair is expected to find support at 1.3540, and a fall through could take it to the next support level of 1.3500. The pair is expected to find its first resistance at 1.3602, and a rise through could take it to the next resistance level of 1.3624.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the USD slightly declined against the JPY and closed at 113.15.

In the Asian session, at GMT0400, the pair is trading at 112.63, with the USD trading 0.46% lower against the JPY from yesterday’s close.

The Japanese Yen gained ground against the USD, after the Bank of Japan (BoJ) reduced the amount of its buying in Japanese government bonds, thus sparking speculation about a future exit from its massive stimulus policy.

Early morning data showed that Japan’s consumer confidence index unexpectedly eased to a level of 44.7 in December, compared to a reading of 44.9 in the prior month and defying market consensus for an increase to a level of 45.0.

The pair is expected to find support at 112.29, and a fall through could take it to the next support level of 111.95. The pair is expected to find its first resistance at 113.18, and a rise through could take it to the next resistance level of 113.73.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the USD rose 0.18% against the CHF and closed at 0.9773.

Macroeconomic data showed that Switzerland’s consumer price index (CPI) surprisingly remained flat on a monthly basis in December, against market expectations for a fall of 0.1%. The index had dropped 0.1% in the prior month.

In the Asian session, at GMT0400, the pair is trading at 0.9769, with the USD trading slightly lower against the CHF from yesterday’s close.

The pair is expected to find support at 0.9753, and a fall through could take it to the next support level of 0.9736. The pair is expected to find its first resistance at 0.9785, and a rise through could take it to the next resistance level of 0.9800.

Moving ahead, traders would keep a close watch on Switzerland’s unemployment rate data for December, due to release in a while.

The currency pair is trading between its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the USD rose 0.18% against the CAD and closed at 1.2421.

According to the Bank of Canada’s (BoC) business outlook survey, Canadian businesses remained optimistic about future sales with firms planning to boost investment and to hire more workers, despite concerns surrounding NAFTA.

In the Asian session, at GMT0400, the pair is trading at 1.2409, with the USD trading 0.1% lower against the CAD from yesterday’s close.

The pair is expected to find support at 1.2381, and a fall through could take it to the next support level of 1.2354. The pair is expected to find its first resistance at 1.2443, and a rise through could take it to the next resistance level of 1.2478.

Ahead in the day, investors would draw their attention to Canada’s housing starts data for December.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

Daily Pivots: (S1) 0.8798; (P) 0.8836; (R1) 0.8859; More...

Break of 0.8847 minor support suggests that rebound form 0.8688 has completed at 0.8923. More importantly, the decline from 0.9305 is possibly still in progress. Intraday bias is back on the downside for 0.8688 support first. Break will target 0.8303 key support around. This will now be the favored case as long as 0.8923 resistance holds.

In the bigger picture, there are various ways to interpret price actions from 0.9304 high. But after all, firm break of 0.9304/5 is needed to confirm up trend resumption. Otherwise, range trading will continue with risk of deeper fall. And in that case, EUR/GBP could have a retest on 0.8303. But we'd expect strong support from 0.8116 cluster support (50% retracement of 0.6935 to 0.9304 at 0.8120) to contain downside.

Daily Pivots: (S1) 1.5229; (P) 1.5284; (R1) 1.5317; More....

EUR/AUD's decline from 1.5770 extends lower and focus is now on 1.5226 key support level. As long as this support holds, further rise will still be in favor. Break of 1.5430 minor resistance will now indicate completion of the correction from 1.5770 and turn bias back to the upside for retesting 1.5770. However, sustained break of 1.5226 will indicate larger reversal and target 1.4949 support next.

In the bigger picture, we're holding on to the view that corrective decline from 1.6587 medium term top (2015 high) has completed at 1.3624. Rise from 1.3624 is expected to extend to retest 1.6587. We'll hold on to this bullish view as long as 1.5226 resistance turned support holds. Firm break of 1.6587 will resume long term rise from 1.1602 (2012 low). However, sustained break of 1.5226 will indicate trend reversal and target 1.3624 again.

Daily Pivots: (S1) 152.96; (P) 153.31; (R1) 153.76; More...

No change in GBP/JPY's outlook even though it's losing upside momentum. As long as 151.74 minor support holds, further rally is expected. Current rise should target 61.8% projection of 139.29 to 152.82 from 146.96 at 155.32 first. Break will target 100% projection at 160.49 next. However, firm break of 151.74 will turn focus back to 149.40 support instead.

In the bigger picture, it now looks like GBP/JPY has finally taken out 38.2% retracement of 195.86 to 122.36 at 150.43. Medium term rise from 122.36 should be targeting 61.8% retracement at 167.78. This will now be the favored case as long as 146.96 support remains intact.

Daily Pivots: (S1) 134.87; (P) 135.59; (R1) 136.05; More....

The pull back from 136.63 extends lower today. But at this point, we'd still downside to be contained by 134.39 resistance turned support to bring another ally. Above 136.63 will extend the larger up trend towards 61.8% projection of 114.84 to 134.39 from 132.04 at 144.12. Nonetheless, firm break of 134.39 will be an early sign of trend reversal and turn focus back to 132.04 key support.

In the bigger picture, medium term rise from 109.03 (2016 low) is seen as at the same degree as the down trend from 149.76 (2014 high) to 109.03 (2016 low). It should now be targeting 141.04/149.76 resistance zone. On the downside, break of 132.04 support is needed to be the first sign of medium term reversal. Otherwise, outlook will stay bullish in case of pull back.

DAX Short Term Elliott Wave view suggests that the Index ended Intermediate wave (X) pullback at 12731.46. The rally from there is unfolding as a 5 waves impulse Elliott Wave structure where Minutte wave (i) ended at 12943, Minutte wave (ii) ended at 12881.5, Minutte wave (iii) ended at 13408.5, and Minutte wave (iv) is proposed complete at 13328.5. Index has scope to extend 1 more leg higher in Minutte wave (v) before ending 5 waves up from 1/2 low (12731.46).

The move higher in Minutte wave (v) should also end Minute wave ((a)) of a larger degree. Afterwards, Index should pullback in Minute wave ((b)) to correct cycle from 1/2 low before the rally resumes. Chasing the Index higher from here is risky, but we don’t like selling the Index either. We expect buyers to appear during Minute wave ((b)) pullback in 3, 7, or 11 swing for an extension higher as far as pivot at 1/2 low (12731.46) stays intact.

DAX 1 Hour Elliott Wave Chart