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The US Dollar is trading in a symmetrical triangle against the Mexican Peso for the last month. The rate tested an eight-month high of 19.2824 on two separate occasions during this time and has been subsequently moving away from this mark . From technical point of view, the triangle should be breached to the upside. However, given the aforementioned high, this upward movement might prove to be limited. Technical indicators suggest that the rate is unlikely to move dramatically during the following day or even a week. However, it is still expected that the flat down-trend could be preserved. A possible downside target that the pair might approach during the following two weeks is the monthly PP circa 18.90.

The Turkish Lira has been stranded in two major patterns against the Japanese Yen. The dominant one is a descending triangle which was formed as early as mid-2016. Meanwhile, a more recent one is a falling wedge. It has constrained the rate in a downward-sloping movement for the last three months as a result of which the Lira moved slightly below its 2017 low of 29.11 early in this session. The rate might still edge lower down to the 28.80 area where the bottom wedge boundary and the weekly S2 are located. In the unlikely event of a strong downside momentum, the rate might also fall until the monthly S2 and the weekly S3 at 28.40 are reached. By and large, the wedge should be breached to the upside during the following trading sessions, as it points to soon maturity. The scope of a subsequent surge is not yet clear. The monthly PP is located at the relatively distant 30.45 mark, while there are various weekly pivot points along the way.

The Greenback rose slightly against the Canadian Dollar on the release showing higher-than-projected growth in the US producer prices. The USD/CAD exchange rate rose 10 base points to continue appreciation to touch daily high in the 1.2770 area.

The Labour Department revealed that the US Producer Price Index increased 0.4% over the month of October, surprising expectations for a weaker gain of 0.1%. The surge was driven by a rise in the cost of services. In addition, data showed steady acceleration in underlying produced prices, which encouraged projections for a gradual inflation growth and kept the Fed on track to make the interest rate hike in December.

The Sterling fell against the US Dollar on disappoint UK consumer inflation report. The GBP/USD currency pair dropped 32 base points or 0.24% to make a double touch of the intraday low close to the 1.3090 mark. On Wednesday motning the pair was seen trading in the 1.3140 area, awaiting the other closely watched report on average earnings.

Britain's consumer price growth held steady at 3.0% in October, while analysts' forecasted it to expand 3.1% in the reported month. An unexpectedly steady inflation raised questions on how fast the Bank of England is likely to raise key interest rates. Meanwhile, the Bank argued that Brexit would damage the UK ability to expand as fast as previously without bearing excess inflation.

The Euro jumped against the US Dollar on surprisingly strong German GDP data. However, the trend was reversed as the next data showed 0.6% growth pace in the EU. The EUR/USD currency pair added 21 base points or 0.18% to appreciate further to the 1.1720 mark. Destatis reported that German economy expanded at a better-than-anticipated pace of 0.8% in the third quarter, fuelled by higher capital investment and exports. The Euro zone’s GDP growth was stable at 0.6%, pointing to smaller differences in growth figures between the member states. In this regard, the 19-country monetary region is expected to grow at the strongest pace in a decade this year, which would bolster the case for the ECB to start monetary policy tighthening.

Spot Gold extended advance of past two days and cracked strong resistance provided by daily Kijun-sen line at $1284.

Fresh weakness of the US dollar keeps gold price inflated for further advance. Bulls focus barriers at $1288/90 (09 Nov recovery peak / Fibo 61.8% of $1306/$1263 downleg), break of which would open key resistance at $1293 (base of thickening daily Ichimoku cloud, reinforced by falling 55SMA).

Daily techs are firming with double bull-cross (10/20 and 10/100 SMA's) underpinning the advance.

US inflation and retail sales data are closely watched for fresh signal with weaker than expected figures expected to further boost yellow metal's price.

Res: 1288, 1290, 1293, 1296
Sup: 1283, 1278, 1273, 1270

E-mini S&P500 is in a third leg of decline, which has room to drop towards 2556, where leg down from 2587 would be equal in distance compared to first leg from Nov 08 high.

S&P500, 30Min

We think that Nikkei225, which has been one of the leaders in uptrend, can now be the leader in downtrend, and is breaking sharply the channel of a fifth wave, so normally that means more weakness ahead.

Nikkei225, 4H

Strong bearish acceleration on Wednesday eventually broke below daily Kijun-sen (113.19) which kept the downside protected in past one week and extended weakness through next significant support at 112.95 (31 Oct trough).

Fresh bears also cracked support at 112.82 (Fibo 61.8% of 111.65/114.73 upleg), break of which would generate fresh bearish signal.

Top of weekly cloud (112.31) is coming in sight, with stronger bearish acceleration capable of traveling towards key short-term supports at 111.65/54 (16 Oct trough / daily cloud top).

Yen rallies on weaker Nikkei Index with focus turning towards US CPI and Retail Sales data, due later today.

Inflation is expected to weaken in Oct according to 0.1% forecast vs 0.5% in Sep while core CPI is expected to tick higher (2.2% f/c vs 2.1% previous month).

Today’s release will be fresh indication for the US policymakers, however, as Fed is expected to act in December and hike rates once more this year.

Retail Sales are expected to significantly drop in Oct (0.1% f/c vs 1.6%) which could further pressure the greenback on weak releases today.

Res: 113.19, 113.49, 113.65, 113.91
Sup: 112.76, 112.31, 112.00, 111.65

Cable is steady in early Wednesday's trading and tested Tuesday's high at 1.3186, where daily Kijun-sen capped the rally. Firm near-term tone following Tuesday's rally signals further upside and test of daily cloud base (1.3214) which resisted attack last Friday.

Daily techs are improving and supportive for further advance, however, focus turns towards UK earnings data. Forecast for September stands at 2.1%, below 2.2% the previous month and weaker readings could slow near-term bulls.

Also, UK jobless claims are forecasted to rise in September 2.3K vs 1.7K in Aug while Unemployment rate is expected to stay unchanged at 4.3%.

Immediate support lies at 1.3167 (broken 20SMA) with 10 SMA (1.3138) expected to keep the downside protected.

Return below 100SMA (1.3115) will be bearish signal and would re-expose key supports at 1.3038/26.

Res: 1.3214, 1.3260, 1.3298, 1.3313
Sup: 1.3167, 1.3138, 1.3115, 1.3061

EUR/USD

Current level - 1.1793

The break through 1.1730 dynamic resistance signals a reversal of the whole downmove from 1.2090 and my outlook here is bullish, for a rise towards 1.1870 area. Initial support is found around 1.1775, followed by 1.1730 break-out area.

USD/JPY

Current level - 113.10

The failure below 114.05 crucial resistance signals a bearish outlook, for a break through 113.00 area, towards 111.60 support. Crucial on the upside is the intraday high at 113.50.

GBP/USD

Current level - 1.3150

Despite the failure at 1.3180 resistance, my outlook here is bullish above 1.3130, for a rise towards 1.3220 and 1.3340 later on.