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The single European currency depreciated about 43 base points against the Japanese Yen on Friday. The currency pair was guided down by a descending channel pattern.

The exchange rate tested the 100-hour simple moving average at 121.17 during the morning hours of today's trading session.

If the resistance level formed by the 100-hour SMA holds, the currency exchange rate will continue its southern movement today.

On the other hand, if the pair passes the resistance level, bullish traders could drive the pair towards the upper line of the descending channel pattern at 121.51 within this session.

The Australian Dollar depreciated about 42 base points against the US Dollar on Friday. The 50-hour simple moving average provided support for the currency pair during Friday's trading session.

A breakout occurred through the lower boundary of an ascending channel pattern during the morning hours of Monday's trading session.

Given that a breakout had occurred, it is likely that the AUD/USD exchange rate will continue to edge lower within this session.

The potential target for bearish traders will be near a support level formed by the 200-hour SMA at 0.7012.

On Friday, the EUR/USD currency pair declined to the 1.1210 level. During today's morning, the pair was trading at the monthly S1 located at 1.1220.

Note, that the exchange rate is pressured by the 55-, 100– and 200-hour moving averages, currently located in the 1.1229/1.1243 range. Thus, it is likely, that the rate could go downwards to re-test the lower boundary of the short-term ascending channel at 1.1205.

It is unlikely, that the pair could breach the given channel south due to the support level formed by the Fibonacci 23.80% retracement at 1.1200. However, if the given support does not hold, it is unlikely, that the rate could drop lower than the weekly S1 at 1.1187.

At the end of the previous trading week, the GBP/USD exchange rate reversed north from the resistance level formed by the monthly S1 at 1.2545.

During Monday's morning, the rate was testing the support cluster formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 1.2469/1.2504 range.

If the given support does not hold, it is expected, that the currency pair could continue to decline. A possible downside target is the 1.2440 level.

Otherwise, it is likely, that the pair could reverse north in the nearest future and re-test the given resistance

The US Dollar appreciated about 77 base points against the Canadian Dollar on Friday. After the currency pair tested the weekly R1 at 1.3108, the pair made a retracement down.

The 50-, 100– and 200-hour SMAs was pressuring the exchange rate lower during the first half of Monday's trading session.

The USD/CAD pair could aim for a support level formed by the weekly S1 at 1.3014 within this session.

If the support line holds, a potential upside reversal could occur today.

During Friday, the USD/JPY currency pair surged to the upper boundary of the short-term descending channel located circa 108.07.

During today's morning, the pair was testing the support cluster formed by the 55– and 100-hour SMAs, as well the weekly and monthly PP in the 107.72/107.91 range.

It is expected, that the exchange rate could surpass the given support and continue to decline, as it pressured by the 200-hour SMA, currently located at 108.07.

Otherwise, it is likely, that the rate could trade sideways between the given resistance and support in the short term.

The New Zealand Dollar depreciated about 30 base points against the US Dollar on Friday. The decline was stopped by a support level formed by the 50-hour simple moving average at 0.6792.

If the 50-hour SMA holds, the currency pair will continue its upside movement within this session.

On the other hand, if the NZD/USD currency exchange rate breaks the support level, as mentioned earlier, a decline towards a support cluster formed by the 100-hour SMA and the weekly PP at 0.6744 could be expected during the following trading session.

During the previous trading session, the price for gold declined to the support level formed by the 100-hour SMA at 1,421.87.

During Monday's morning, the XAU/USD exchange rate was trying to surpass the resistance formed by the 55-hour SMA at 1,430.36.

If the given moving averages hold, it is expected, that the rate could trade sideways in the nearest future.

Otherwise, it is likely, that gold could surpass the given resistance and appreciated against the US Dollar. It is unlikely, that the rate could exceed 1,450.00 due to resistance of the upper line of the long-term ascending trend.

Cable eases further in early European trading on Monday, following failure to hold gains above pivotal Fibo support at 1.2535 (38.2% of 1.2783/1.2382), with action stalled on approach to falling 20DMA (1.2555).

Fresh weakness probes below daily Tenkan-sen (1.2480) with close below to generate reversal signal and risk deeper fall, as momentum remains deeply in the negative territory on daily chart and MA's are in bearish setup.

This week is key Britain, as new PM will be announced on Tuesday, with political turmoil gaining pace after British Finance Minister said he will resign if Boris Johnson became prime minister.

Fears of no-deal Brexit under Johnson's leadership are rising, although he said that free trade deal with the EU could be reached that could break Brexit deadlock on Northern Irish backstop, on borders between Norther Ireland province Northern Ireland and EU member Ireland.

All cards remain on the table, with pressure on pound expected to increase on signs of no significant progress in Brexit process.

Alternative scenario on lift above pivotal barriers at 1.2555 (20DMA) and 1.2580 zone (12 July high/30DMA) could be expected on more optimistic news.

Res: 1.2495,1.2535,1.2555,1.2580
Sup: 1.2475,1.2439,1.2425,1.2382

According to the latest "prospect for the UK economy", NIESR said there is around a one-in-four chance that the country is already in a "technical recession". The outlook beyond the October 31 Brexit date is "very murky indeed" with possibility of a "severe downturn" in case of a disorderly no-deal Brexit.

The think thank also assign a 40% chance of no-deal Brexit, versus 60% for deal/delay. Even if a no-deal Brexit is avoided, the economy is forecast to growth at around only 1% in 2019 and 2020, as "uncertainty continues to hold back investment and productivity growth remains weak".