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EUR/GBP is trading mixed. 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 sideways trading.

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). Support stands at 0.7638 (15/12/2017 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 is skewed to the downside after the pair failed to break hourly resistance at 1.2917 (27/10/2017 high). The pair keeps on heading lower.

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 slightly higher. Yet, the technical structure indicates that further weakness are possible. 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 buying demand is increasing and the pair is approaching hourly resistance given at 113.75 (12/12/2017 high) while hourly support is given at 111.99 (15/12/2017 low). The technical structure suggests continued increase.

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's buying pressures are still lively. The pair has exited downtrend short-term channel. The technical structure indicates further potential upside. Support is given at a distance at 1.3304 (15/12/2017 low) while hourly resistance can be found at 1.3613 (03/01/2017 high).

The long-term technical pattern is reversing. The Brexit vote had paved the way for further decline. Long-term support can be found at 1.1841 (07/10/2017 low). Long-term resistance given around 1.35 is at stake and indicates a long-term reversal in the negative trend. Yet, it is very unlikely at the moment.

EUR/USD is now trading around 1.20. The pair lies in a bullish short-term momentum. Strong resistance is given at 1.2092 (08/09/2017 high) while hourly support can be found at 1.1980 (intraday low). Stronger support is given a distance at 1.1718 (12/12/2017 low). Expected to show continued increase.

In the longer term, the momentum is now turning largely positive. We favour a continued bullish bias. Key resistance is holding at 1.2252 (25/12/2014 high) while strong support lies at 1.0341 (03/01/2017 low).

Another record high for Etherum
CFTC data show different picture for Bitcoin traders
Dollar pushed gold lower

If you really think that Bitcoin is nothing but a sham concept or a big bubble, then we should have seen massive short bets by now. But after observing the volume and the size of the short trades on Bitcoin’s future market, the evidence of such an aspect is clearly missing. This makes you assume either traders are actually scared to short bitcoin because of its popularity and it's volatility or they are waiting on the sidelines. So, you can say that for sceptics, since the launch of the Bitcoin futures, the process has been disappointing. Having said this, since the launch of the Bitcoin futures on the CBOE and the CME exchanges, one thing which we have not witnessed is the string of record highs for Bitcoin.

Looking at the recent CFTC data on Bitcoin, the general theme which becomes more prominent is that of speculators slowly building their short position. The most intriguing part of the CFTC data is the leverage fund category (hedge funds & money managers are part of this herd); it holds nearly one-quarter of the short position as compared to the total open interest. Remember, the CFTC data is not that recent, these numbers were reported on the 26 December but we do need more latest numbers in order to have any firm view.

Ethereum has grabbed the headlines in the crypto space today as the currency has made another record high of $1266. The momentum for the currency has been strong especially when you compare this to Bitcoin. Only in four days, Ethereum traders pushed the price to an all-time high of $1000.

As for the dollar index, it is trading higher despite the fact the numbers released on Friday weren't amazing. At the same time, this US NFP report is not going to stop the Fed from their current tightening cycle. The Fed is hopeful the modest improvement in the commodity prices and the US tax overhaul both help the country's weak inflation data.

Nonetheless, the precious metal is still holding its ground and it is trading well above the critical level of 1300. The US NFP number has put things more perspectively for gold traders that the Fed would struggle to increase the interest rate aggressively this year given the current market situation.

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Crude oil reaches its top

Oil prices are at a 30-month high, despite boosted US production and inventories and a drop in the US rig count. The harsh winter is playing a short-term role, but some analysts are suggesting that 2018 prices will surge past our forecast of US$ 60-65 per barrel of West Texas Intermediate.

We're not convinced – yet, but their reasons are: 1) growing confidence in demand growth in developed and emerging markets; 2) booming consumption in China (the world's largest oil consumer), which reported modest gains in 2017 new passenger-car sales but big jumps in used car buying; and 3) speculation that US shale production might not be able to maintain currently high rates. We still short on crude, but are watching these factors carefully.

3 hikes and we're out?

Will or won't the US Federal Reserve hike interest three times in 2018? Although this has been talked up for months now, we don't expect a rate increase from the next meeting of the Fed's Open Market Committee, scheduled for 31 January. Indeed, as long as inflation does not clearly pick up, the Fed will be reluctant to tighten money.

But, if it does, three hikes in 2018 will disrupt markets. A serious sell-off would become likely.

For now, investors trust the Fed. The front-end of the yield curve will continue to increase, and the US equities frenzy will keep going. The US dollar has strengthened since last Friday and should continue to do so in the short-term. The Fed's tightening hand has also been weakened by the latest employment figures. Both the non-farm payrolls and the ADP report for December have been revised downward, which will make the central bank even more cautious.

USDCAD plummeted almost 1% in the previous two trading days and this weakness has taken the price to a fresh three-month low of 1.2354. The pair has seen a strong sell-off since the aggressive bearish run started on December 19.

In the daily timeframe, significant obstacles have been broken, such as the consolidation area of 1.2590 – 1.2915, the 38.2% and 50.0% Fibonacci retracement levels of the last big up-leg with the low at 1.2060 and the high at 1.2915, as well as the 1.2450 barrier, which was acting as a support level before the penetration.

During the decline, the price touched the 61.8% Fibonacci level at 1.2386, and paused the sharp fall, as the price is trying to recover from weakness. If the price moves higher, it could hit the 1.2450 resistance level and the 1.2500 strong handle.

Conversely, a drop beneath the 61.8% Fibonacci level could push the pair towards the 1.2240 support level or moreover, until the 1.2060 barrier. In the near-term, the 20-simple moving average is sloping to the downside confirming the recent bearish movement as well as the 50-SMA in the medium-term is moving south. Additionally, in the short to medium term time frame, the MACD and the RSI indicators are holding within the oversold areas, signaling further downward pressure.