Sample Category Title

For the 24 hours to 23:00 GMT, the GBP declined 0.1% against the USD and closed at 1.3373, after the International Monetary Fund (IMF) lowered UK's GDP growth forecast for this year and next, stating that political uncertainty arising from Brexit is weighing on growth.

The organisation has downgraded Britain's economic growth from 1.7% to 1.6% for 2017, while expecting growth to slow further to 1.5% in 2018.

Nevertheless, it added that faster-than-expected progress towards a mutually beneficial Brexit outcome could boost confidence and spur growth in the economy.

In the Asian session, at GMT0400, the pair is trading at 1.3363, with the GBP trading 0.07% lower against the USD from yesterday's close.

Overnight data revealed that UK's GfK consumer confidence index unexpectedly eased to level of -13.0 in December, hitting its lowest level since December 2013, as households remained deeply pessimistic about the current economic situation due to heightened Brexit uncertainty. Market participants had anticipated the index to remain steady at a level of -12.0.

The pair is expected to find support at 1.3339, and a fall through could take it to the next support level of 1.3316. The pair is expected to find its first resistance at 1.3403, and a rise through could take it to the next resistance level of 1.3444.

Moving ahead, traders would keep a close watch on Britain's public sector net borrowings data for November, due to release in a few hours.

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 0.43% against the JPY and closed at 113.35.

In the Asian session, at GMT0400, the pair is trading at 113.4, with the USD trading slightly higher against the JPY from yesterday’s close.

Earlier today, the Bank of Japan (BoJ), at its latest monetary policy meeting, voted 8-1 to maintain the benchmark interest rate steady at -0.10% and its target for 10-year Japanese government bond yields at around 0.0%. Further, the central bank upgraded its assessments on private consumption and capital expenditure, amid improvement in corporate profits and business sentiment.

The pair is expected to find support at 113.06, and a fall through could take it to the next support level of 112.73. The pair is expected to find its first resistance at 113.60, and a rise through could take it to the next resistance level of 113.81.

Going ahead, investors will look forward to comments by the BoJ Governor, Haruhiko Kuroda, in a post-meeting news conference, scheduled in a few hours, for further clues on the central bank’s monetary policy trajectory.

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

For the 24 hours to 23:00 GMT, the USD rose 0.15% against the CHF and closed at 0.9866.

In the Asian session, at GMT0400, the pair is trading at 0.9861, with the USD trading slightly lower against the CHF from yesterday’s close.

The pair is expected to find support at 0.9831, and a fall through could take it to the next support level of 0.9802. The pair is expected to find its first resistance at 0.9888, and a rise through could take it to the next resistance level of 0.9916.

Ahead in the day, market participants would eye Switzerland’s trade balance figures for November.

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

For the 24 hours to 23:00 GMT, the USD declined 0.34% against the CAD and closed at 1.2835.

In the Asian session, at GMT0400, the pair is trading at 1.2826, with the USD trading 0.07% lower against the CAD from yesterday's close.

The pair is expected to find support at 1.2805, and a fall through could take it to the next support level of 1.2785. The pair is expected to find its first resistance at 1.2860, and a rise through could take it to the next resistance level of 1.2895.

This afternoon will bring a pair of crucial Canadian releases, consisting of consumer price inflation for November and retail sales data for October.

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

Daily Pivots: (S1) 0.7651; (P) 0.7665; (R1) 0.7679; More...

Intraday bias in AUD/USD remains neutral at this point. Price actions from 0.7500 are viewed as a corrective pattern. Upside should be limited by 0.7732 cluster resistance (38.2% retracement of 0.8124 to 0.7500 at 0.7738). On the downside, below 0.7604 minor support will bring rest of 0.7500. Break will resume whole fall from 0.8124. However, sustained break of 0.7732 should invalidate our bearish view and bring stronger rise through 61.8% retracement at 0.7886.

In the bigger picture, corrective rise from 0.6826 medium term bottom is likely completed at 0.8124, after hitting 55 month EMA (now at 0.8034). Decisive break of 0.7328 key cluster support (61.8% retracement 0.6826 to 0.8124 at 0.7322) will confirm. And in that case, long term down trend from 1.1079 (2011 high) will likely be resuming. Break of 0.6826 will target 61.8% projection of 1.1079 to 0.6826 from 0.8124 at 0.5496. This will now be the favored case as long as 0.7732 near term resistance holds.

Daily Pivots: (S1) 1.2808; (P) 1.2844; (R1) 1.2870; More....

Intraday bias in USD/CAD remains neutral as consolidation continues. As long as 1.2598 resistance turned support holds, near term outlook remains bullish. On the upside, firm break of 1.2916 will resume the rise from 1.2061 and target 1.3065 medium term fibonacci level next. However, sustained break of 1.2598 will argue that rebound from 1.2061 has completed after hitting 55 week EMA (now at 1.2885). Near term outlook will be turned bearish in this case.

In the bigger picture, USD/CAD should have defended 50% retracement of 0.9406 (2011 low) to 1.4689 (2016 high) at 1.2048. And with 1.2048 intact, we'd favor the case that fall from 1.4689 is a correction. Rise from 1.2061 medium term bottom should now target 38.2% retracement of 1.4689 to 1.2061 at 1.3065. Firm break there will target 1.3793 key resistance next (61.8% retracement at 1.3685). We'll now hold on to this bullish view as long as 1.2450 support holds.

Daily Pivots: (S1) 1.1832; (P) 1.1867 (R1) 1.1905; More....

The firm break of 1.1862 minor resistance suggests that pull back from 1.1960 has completed at 1.1717 already. More importantly, 1.1712 cluster support (61.8% retracement of 1.1553 to 1.1960 at 1.1708) remains intact. And near term outlook in EUR/USD stays bullish. Intraday bias is back to the upside for 1.1960 first. Break there will extend the rise from 1.1553 to retest 1.2091 high.

In the bigger picture, rise from 1.0339 medium term bottom is seen as a corrective move for the moment. Therefore, in case of another rally, we'd be expect 38.2% retracement of 1.6039 (2008 high) to 1.0339 (2017 low) at 1.2516 to limit upside and bring reversal. Meanwhile, sustained trading below 55 week EMA (now at 1.1435) will suggest that such medium term rebound is completed and could then bring retest of 1.0339 low.

Daily Pivots: (S1) 1.3355; (P) 1.3387; (R1) 1.3407; More.....

The correction from 1.3549 is still extending and intraday bias remains neutral. As long as 1.3220 support holds, we'd favor another rise. Break of 1.3549 will target 1.3651 high next. Break there will resume medium term rally from 1.1946. However, firm break of 1.3220 will turn near term outlook bearish for 1.3038 key support level.

In the bigger picture, while the medium term rebound from 1.1946 low was strong, it's limited below 1.3835 key support turned resistance. As long as 1.3835 holds, we'd view such rebound as a correction. That is, we'd expect another leg in the long term down trend through 1.1946 low. However, sustained break of 1.3835 should at least send GBP/USD to 38.2% retracement of 2.1161 (2007 high) to 1.1946 (2016 low) at 1.5466.

Daily Pivots: (S1) 0.9835; (P) 0.9860; (R1) 0.9892; More....

Intraday bias in USD/CHF remains neutral at this point as it struggles to find a clear direction. On the upside, above 0.9977 will resume the rebound from 0.9734 for 1.0037 resistance. On the downside, below 0.9834 will probably extend the correction from 1.0037 through 0.9734. But we'd expect strong support from 61.8% retracement of 0.9420 to 0.1.0037 at 0.9656 to complete the correction from 1.0037 and bring rebound.

In the bigger picture, range trading continues between 0.9420/1.0342. At this point, 0.9420 appears to be a strong support level. Therefore, in case of decline attempt, we don't expect a firm break of this level. Nonetheless, strong break of 1.0342 is also needed to confirm upside momentum. Otherwise, medium term outlook will stay neutral.

Daily Pivots: (S1) 112.99; (P) 113.22; (R1) 113.62; More.....

Intraday bias in USD/JPY stays on the upside at this point. Break of 113.74 will resume rise from 110.83 and target key resistance at 114.73 next. On the downside, below 112.83 minor support will turn intraday bias neutral first. But we'll continue to expect further rally ahead as long as 112.02 support holds.

In the bigger picture, we're holding on to the view that correction from 118.65 is completed at 107.31. And medium term rise from 98.97 (2016 low) is going to resume soon. Sustained break of 114.73 should affirm our view and send USD/JPY through 118.65. However, break of 107.31 will dampen this view and extend the medium term fall back to 98.97 low.