Sample Category Title

EURUSD (1.2049): The EURUSD continued to edge higher as price advanced to a fresh 4-month high at 1.2090 before easing back. The euro is now within reach of 1.2090 resistance which could be tested in the short term. Further gains can be seen coming on a close above this level. To the downside, the declines could be limited to 1.1954 level where support is most likely to be established. This could also become the new range for EURUSD in the short term. Watch for a potential exhaustion to the upside momentum in the short term for a possible correction. Unless we see a strong breakout that will justify further gains.

The U.S. dollar continued to extend it's weakness, giving way to most of the currencies which are posting further gains. The euro rose above 1.20 handle and remains strong above this level. Gold prices also posted impressive gains as price rallied to $1320 an ounce on Tuesday.

On the economic front, the markets were relatively quiet. The UK's manufacturing PMI eased to 56.3 but the decline in the index did not impact the British pound much. The currency maintained gains on the back of a weaker USD. In the Eurozone, the final manufacturing PMI was in line with estimates at 60.6.

Looking ahead, the UK's construction PMI data is expected to be released today. Economists forecast a slowdown in the construction activity with the PMI likely to show a reading of 52.8. In the U.S. the ISM's manufacturing PMI data will also be released with estimates showing a reading of 58.1. Wrapping up the day, the FOMC meeting minutes will be coming out later in the evening.

During the early hours of Wednesday's trading session the yellow metal's price began a slight decline. The decline started after the metal reached above the 1,320 mark and setting a new record.

All in all, the decline was expected, because such a record surge had only a slight chance of continuing.

Meanwhile, there are various signs that the surge of the commodity price will increase after a period of consolidation. The base for that from a technical perspective would be the combined support of a junior channel up pattern and the 55-hour simple moving average

The common European currency has stopped its surge against the US Dollar. The event is providing an opportunity to review the situation on the charts.

First of all the currency pair has passed the support of the lower trend line of a junior channel up pattern near the 1.2050 mark. Due to that reason it can be expected that a new junior pattern should be looked for, as the rate continues to fluctuate.

Secondly, the pair has revealed the upper trend line of a medium scale pattern, which has guided the pair for a few months.

In regards to the near future, the 1.21 mark is still the target.

The Sterling continued to strengthen against the US Dollar on Tuesday, thus ending the day with an 81-pip gain. This session, however, mark some changes to this bullish sentiment, as the pair has been trading sideways in a narrow range below the monthly R1. It seems that this minor period of consolidation could be an early indication to a possile change in the market sentiment, at least for today. In addition, technical indicators are gradually retracing from their high positions. In general, this session might mark high volatility due to various fundamentals to be released today. A strong support area is located circa 1.3530, while a breakout of the monthly R1 would send the pair for a test of the weekly R2 at 1.3667.

The US Dollar started Tuesday's trading sessions with minor losses, as the pair was pressured southwards by the 55-hour SMA. Any attempts to breach this line was disrupted by a significant 49-pip plunge later in the session as a result of which the Greenback fell down to the 112.10 mark. Some positions were re-gained during the following hours, thus leaving the rate slightly below the 55-hour SMA once again.

It is very likely that the 112.50 area, likewise reinforced by the 50.0% Fibo retracement, limits further advances during the following hours. This situation might change later in the session when US fundamentals are to be released. An ultimate daily high could be near the 112.80 mark.

The US Dollar has been appreciating against the Norwegian Krone in a channel up since late August. During this period of appreciation, the pair managed to reach its six-month high of 8.42 on December 21. After that, the bearish sentiment took over and thus allowed for a breakout of the aforementioned long-term channel earlier this week. It is expected that the Greenback could be tended north during the following sessions; however, this upward movement might not be very significant. A possible target in this case might be the 8.2690 area, as the monthly and weekly PPs and the 200-hour SMA are located nearby. By and large, the bearish sentiment should eventually prevail and thus push the rate lower.

CHF/SGD has been dominated by two channels. The medium-term pattern has confined the rate since late October. The pair failed to reach its upper boundary earlier this week, when the senior channel forced the Franc to reverse from the 1.3750 mark. Technical indicators show mixed results about the pair's direction during the following sessions. As apparent on the chart, the Franc has been trying to overcome the 55-hour SMA—an area which is likewise reinforced by the weekly PP and the 61.8% Fibo. This strong resistance cluster is expected to pressure the rate lower during this session. This fall, however, should not be long-lasting, as the 100– and 200-hour SMAs are located nearby circa 1.3640. As a result, these two barriers could bound the rate for several sessions. Its subsequent movement might be lower, setting the 1.3550 area as a possible downside target.

The USD/CAD exchange rate was not affected strongly by the Canadian and the US manufactjust ahead of 4:00 PM Londox fix.uring reports. Though the pair fell strongly by 31 base points just ahead of 4:00 PM Londox fix.

The Canadian manufacturing sector marked stronger pace of growth by the end of 2017, as companies increased operating capacity due to a rise in work backlogs and new orders, data revealed on Tuesday. Markit reported that Canada's Manufacturing PMI grew to 54.7 in December, following 54.4 in the prior month. Companies stated that higher demand was partly caused by spending within the energy sector, which kept recovering from the oil price drop two years ago. In addition, 36% of surveyed manufacturers anticipate output volumes to increase in 2018.

The Sterling ignored weaker than expected UK Manufacturing PMI data, but remained relatively strong against the US Dollar. The GBP/USD currency pair was little changed on the report, while remaining under bullish sentiment to head for the 1.3600 mark.

Britain's manufacturing sector grew at a weaker pace in December, following four-year high reached in the prior month, while still remaining a bright spot in the UK economy heading to 2018. in contrast to solid expansion in the Euro zone, the HIS Markit/CIPS Manufacturing PMI for Britain fell to 56.3 in the reported month. The PMI remained above its yearly average for a whole 2017, despite some cooling in new business, export orders, output and employment growth.