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The USD fell in the last 24 hours and pushed prices nicely to the downside, through 19.20 support level so it appears that bears can stay in control now, especially if that's wave three of three headed to 19.00.

USDMXN, 1h

Crude oil is definitely helping USD to move lower, since price turned up from wave four and is now in fifth wave that can be underway to 57.00, so more dollar weakness can be seen in todays sessions.

Crude oil, 1h

Cable consolidates in early Wednesday's trading after 1.08% rally on Tuesday (the biggest one-day gains since 1 Nov).

Tuesday's surge after strong UK jobs data resulted in break and close well above converged 20/200SMA's, as well close above 1.3047 (Fibo 61.8% of 1.3217/1.2772), generating strong bullish signal.

Bulls turn focus towards key barrier at 1.3217 (2019 high, posted on 25 Jan), but may undergo consolidative / corrective action before continuing, as daily stochastic is overbought and momentum is turning lower.

Strong 1.30 support zone (broken 20/200SMA's / psychological) is expected to hold and keep bulls intact for fresh extension higher, with repeated close above Fibo barrier at 1.3047 to confirm bullish stance and open way towards initial barriers at 1.3112 (Fibo 76.4% of 1.3217/1.2772) and 1.3160 (31 Jan lower high) en-route to 1.3217 target.

Caution on return and close below 20/200SMA that would risk deeper pullback, as 25 Feb daily cloud twist would be magnetic.

Markets will also focus on the outcome of today's meeting of UK PM May with EU Commission chief Juncker.

Positive news would offers fresh support to sterling while another failure of Theresa May's attempts to save her Brexit plan would increase pressure on pound.

Res: 1.3047; 1.3076; 1.3112; 1.3160
Sup: 1.3031; 1.3004; 1.2995; 1.2942

UK Foreign Minister Jeremy Hunt said the attorney general holds the key on getting the Brexit deal through the parliament.

He said that "We can get this deal through parliament, if we can have a deal where the attorney general can change his advice to parliament. That is going to be key to unlocking it".

And, "with vision and statesmanship on both sides, this can be done and I am hopeful it will be."

Daily Pivots: (S1) 143.06; (P) 143.88; (R1) 145.29; More...

GBP/JPY's rebound from 131.51 resumed by breaking 144.84 and intraday bias is back on the upside. At this point, we'd expect strong resistance from trend line (now at 146.64) to limit upside, at least on first attempt. On the downside, firm break of 141.00 support will suggest completion of the rebound and turn bias to the downside.

In the bigger picture, the strong rebound from 131.51 suggests that medium term fall from 156.59 (2018 high) has completed already. The corrective structure of such decline is turn argues that it's the second leg of the corrective pattern from 122.36 (2016 low). And this pattern is starting the third leg. On the upside, decisive break of 149.38 will pave the way to 156.59 resistance and above.

Daily Pivots: (S1) 124.95; (P) 125.24; (R1) 125.73; More....

Despite strong rebound, EUR/JPY is staying below 125.95 and intraday bias remains neutral first. ON the downside, break of 123.78 support will suggests completion of rebound from 118.62 after rejection by 55 day EMA. Deeper fall would then be seen back to retest 118.62 low. However, decisive break of 125.95 will dampen our bearish view and target 129.25 resistance next.

In the bigger picture, medium term rebound from 109.03 (2016 low) has completed at 137.49 already, with corrective structure. Fall from 137.49 is likely still in progress. Decisive break of 118.62 will target 161.8% projection of 137.49 to 124.61 from 133.12 at 112.28, which is inside 109.03/114.84 support zone.

EUR/USD

Current level - 1.1337

The dip to 1.1275 led to a new leg upwards and I favor a continuation towards 1.1400 area.

USD/JPY

Current level - 110.87

My outlook is counter-trend, for a reversal and another attempt at 110.20 support.

GBP/USD

Current level - 1.3048

Yesterday's corrective pattern was followed by a fast rise through 1.3000 hurdle and the bias remains positive for a continuation towards 1.3150. Initial support is projected at 1.3000.

Daily Pivots: (S1) 0.8649; (P) 0.8706; (R1) 0.8741; More...

EUR/GBP recovers after hitting 0.8672 but outlook is unchanged. Rebound from 0.8617 could have completed at 0.8840 already. Deeper fall is mildly in favor back to 0.8617/20 key support zone. On the upside, above 0.8762 minor resistance will turn bias back to the upside. Further break of 0.8440 will extend the rebound to 61.8% retracement of 0.9101 to 0.8617 at 0.8916 instead.

In the bigger picture, EUR/GBP is seen as staying in long term range pattern started at 0.9304 (2016 high). The medium term range is set between 0.8620 and 0.9101. Downside breakout of 0.8620 will pave the way back to 0.8312 support . Break of 0.9101 will bring retest of 0.9304/5 resistance.

Daily Pivots: (S1) 1.5789; (P) 1.5854; (R1) 1.5892; More....

EUR/AUD gyrated lower but stays above 1.5721 low. Intraday bias remains neutral and outlook is unchanged. On the upside, break of 1.6060 resistance should confirm that decline from 1.6765 has completed. Further rally should then be seen to retest 1.6765 high. On the downside, however, break of 1.5721 will extend the decline to 1.5346 support instead.

In the bigger picture, as long as 1.5346 support holds, outlook will remain bullish. Uptrend from 1.1602 (2012 low) is expected to resume sooner or later. Break of 1.6765 will target 61.8% retracement of 2.1127 (2008 high) to 1.1602 at 1.7488 next. However, firm break of 1.5346 key support will indicate trend reversal, with bearish divergence condition in weekly MACD, and turn outlook bearish.

Stocks across Asia were mostly higher this morning after strong US earnings and cautious optimism over US - China trade negotiations influenced risk sentiment.

US President Donald Trump's latest comment on how trade talks with China are "going very well" has clearly boosted confidence over negotiations between the two sides concluding on a positive note. However, with Trump also stating that the talks are "very complex" and the current March deadline is not a "magical date", a breakthrough deal is still some distance away. A marketfriendly outcome this week will be for both sides to agree on extending the 1 March deadline, which should provide more time for finding a middle ground on trade policy.

Global equity markets are likely to be mostly dictated by US - China trade developments for the rest of the trading week.

Is the Dollar about to lose its crown?

The broad economic and monetary policy divergence between the United States and other major economies has certainly supported the Dollar in recent months.

However, the Greenback's outlook is slowly pointing in favour of bears, after a ‘patient' Fed and a string of disappointing economic data from the United States reduced buying sentiment towards the currency. With the key fundamental drivers behind the Greenback's appreciation slowing diminishing, is King Dollar losing its grip on the throne?

Investors will direct their attention toward the FOMC Minutes this evening which should offer some clarity into how ‘patient' and ‘flexible' the Fed wants to be when it comes to raising US rates. Markets will also be looking for reasons why the phrase "some further gradual increases in the target range" was removed from the statement. The Dollar is likely to depreciate against a basket of major currencies if the Minutes reinforce speculation over the Fed taking a pause on rate hikes this year. With the combination of political uncertainty in Washington, soft domestic data, concerns over slowing US economic growth and expectations over a pause in US monetary tightening threatening the Dollar's competitive advantage, further downside is on the cards.

Gold remains an investor's best friend

It has been an incredibly bullish trading week for Gold thus far, with the precious metal hitting a fresh 10-month high this morning thanks to Dollar weakness and fears over slowing global growth.

Gold bulls remain in the driver's seat, with further upside expected as geopolitical risk factors and speculation over the Fed taking a pause on monetary tightening boosting attraction for the precious metal. The yellow metal has the potential to extend gains this evening if the FOMC Minutes are presented with a dovish touch – ultimately weakening the Dollar even further. In regards to the technical picture, Gold is heavily bullish on the daily charts as there have been consistently higher highs and higher lows. The breakout and daily close above $1340 is seen opening a path towards $1353.60 and $1360 in the medium term.

Daily Pivots: (S1) 1.1333; (P) 1.1354; (R1) 1.1375; More...

Intraday bias in EUR/CHF remains neutral as it's staying in range of 1.1310/1444. With 1.1310 intact, further rise is in favor. On the upside, break of 1.1444 will resume whole rally from 1.1181 for 1.1501 key resistance next. However, break of 1.1310 will argue that the rebound from 1.1181 might be completed. Intraday bias will be turned back to the downside for 1.1181 low again.

In the bigger picture, price actions from 1.2004 medium term top is seen as a correction only. Downside should be contained by 1.1154/98 support zone to complete it and bring rebound. Decisive break of 1.1501 (38.2% retracement of 1.2004 to 1.1173 at 1.1490) will confirm completion of the correction, on bullish convergence condition in daily MACD. Further rise should be seen to 61.8% retracement at 1.1687 and above next.