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The Aussie dollar rallied strongly in Asian session on Wednesday, boosted by upbeat data (Australia’s retails sales Feb 0.8% vs 0.3% f/c and trade surplus widened in Feb to 4.80bn A$ from 4.35 bn A$ in Jan).

Better than expected China’s Services PMI (Mar 54.4 vs 52.3 f/c) added to positive signals.

Fresh bullish momentum and break above a cluster of daily MA’s also contributed to bullish tone.

However, the price action on Wednesday remains within the range of previous day, as rally showed signs of fatigue at 55SMA barrier (0.7120) which caps the action since early Feb and marks solid resistance.

Failure to clear 55SMA would keep the pair within congestion but positive tone is expected to dominate while the price holds above 0.71 zone (converged 10/30SMA) that would keep focus on other key barriers at 0.7150/56 (100SMA / daily cloud top) violation of which would generate strong bullish signal.

Loss of 0.71 handle and 20SMA (0.7087) would weaken near-term tone and risk retest of double-bottom at 0.7054/53 (Today / Tue low).

Res: 0.7120, 0.7150, 0.7156, 0.7205
Sup: 0.7100, 0.7087, 0.7054, 0.7041

After a luckluster start to the week, EUR/USD has posted gains on Tuesday. Currently, the pair is trading at 1.1246, up 0.37% on the day. On the release front, the focus is on the service sector. German and eurozone services PMIs indicated expansion and beat their estimates. Eurozone retail sales slowed to 0.4%, but managed to beat the forecast of 0.2%. In the U.S., this week’s employment data kicks off with ADP nonfarm payrolls, which is projected to tick up to 184 thousand. As well, the ISM Non-Manufacturing PMI is expected to drop to 58.1 points.

After disappointing manufacturing PMIs in March, there was better news from services PMI reports. German and eurozone indicators came in at 55.4, and 53.3, respectively. This points to expansion, in contrast to the manufacturing PMIs, which are showing contraction. Investors are also concerned that the manufacturing PMIs have been falling for months. This is largely due to the global trade war, which continues to dampen manufacturing activity in Germany and the rest of the eurozone.

The U.S. economy remains strong, but this week’s key numbers have been anything but impressive. The weak durable goods orders data comes on the heels of soft retail sales numbers for March. Retail sales declined by 0.2%, shy of the estimate of +0.3%. Core retail sales declined by 0.4%, a sharp drop from the 0.9% gain a month earlier. Both indicators posted a second decline in three months, which is bound to raise concerns about the strength of the economy. There are concerns that the economy could be slowing down – growth for the first quarter could be as low as 0.8% annualized, compared to 2.2% in the fourth quarter.

The British pound has moved to a fresh weekly trading high against the US dollar after British PM Theresa May announced that she wants to extend the United Kingdom’s departure date from the European Union. The GBPUSD pair has a bullish bias while trading above the 1.3130 level, while key breakout resistance is found at the 1.3220 level. The recent advance is likely to continue as the MACD indicator on the four-hour time frame has also turned bullish.

The GBPUSD pair is bullish while trading above the 1.3130 level, key resistance is found at the 1.3220 and 1.3270 levels.

If the GBPUSD pair trades below the 1.3130 level, key support is found at the 1.3100 and 1.3055 levels.

The euro is advancing towards the 1.1250 level against the US dollar as risk-on trading sentiment is causing investors to sell the greenback. If bulls can move price above the 1.1250 resistance level the EURUSD pair could advance towards the 1.1290 level. Technical indicators on the four-hour time frame are also suggesting that the current technical correction can head higher.

The EURUSD pair is only intraday bearish while trading below the 1.1216 level, key technical support remains at the 1.1170 and 1.1100 levels.

If the EURUSD pair trades above the 1.1250 level, bulls may test back towards the 1.1290 and 1.1330 resistance levels.

During Tuesday's trading session the Euro traded at the 1.1200 level against the US Dollar. On Wednesday morning, the currency pair jumped to the psychological level at 1.1240.

Given that the pair is being supported by the 55– and 100-hour SMAs, currently located circa 1.1220, it is likely, that some upside potential prevails in the market in the nearest future. It is expected, that the pair entrenches near the resistance level formed by the 200-hour SMA and the weekly PP at 1.1253.

If the given support does not holds, most likely, the exchange rate targets the 2018/2019 minimum located at the 1.1180 mark.

Yesterday the GBP/USD currency pair re-tested the lower boundary of the medium-term ascending channel at 1.3014 and skyrocketed towards the Fibonacci 36.10% retracement at 1.3162.

From a technical perspective, it is unlikely, that the pair would go downside due to the support cluster formed by a combination of the 55-, 100– and 200-hour SMAs, as well the weekly and monthly PPs in the 1.3083/1.3138 range. However, it is expected, that the weekly R1 at 1.3213 would preclude the rate from rising.

Thus, it is likely, that the British Pound trades at the given Fibo 36.10% against the US Dollar.

During yesterday's trading session, the USD/JPY currency rate tried to surpass the support level—the weekly R1 at 111.32.

As apparent on the chart, the rate has been trading in the ascending channel in since the end of March. Thus, it is expected that currency pair targets the upper channel line located circa 112.00. However, the pair has to surpass the resistance level formed by the weekly R1 at 111.76. If the given resistance holds, it is likely that a reversal south occurs in the nearest future.

From a theoretical point of view, it is unlikely, that the pair would go downside, as it is being supported by the 55-hour SMA at 111.29.

On Tuesday, the price for gold raised towards the 100-hour SMA, currently located at 1,293.16. On Wednesday morning, the XAU/USD exchange rate tried to surpass the given resistance.

If the given resistance holds, it is likely that the market remains down-oriented. A possible downside target is the psychological level at the 1,285.00 mark.

On the other hand, the price for gold could use the support from the 55-hour SMA and continue to increase. In this case, the rate could reach the monthly PP at 1,299.44.

During the past 24 hours, the single European currency has appreciated about 90 base points against the Japanese Yen. The currency pair reached a swing high of 125.04 during yesterday's trading session.

Given that the exchange rate has breached a resistance cluster at 125.17, it is likely that the pair will aim for the projected target at 125.70 during the following trading session.

However, technical indicators demonstrate that the currency exchange rate will edge lower today.

During the last 24 hours, the Australian Dollar versus the US Dollar has gained about 0.93% in value. The weekly S2 at 0.7058 provided support for the currency pair during yesterday's trading session.

Technical indicators suggest that the AUD/USD exchange rate could edge lower within this session.

However, given that the currency exchange rate has breached both the 50-, 100– and 200-hour simple moving averages at 0.7099, it is likely that bullish traders will for a swing high of 0.7143 during the following trading session.