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Daily Pivots: (S1) 125.39; (P) 125.67; (R1) 125.98; More....

EUR/JPY lost momentum against after hitting 125.95 and intraday bias si turned neutral first. In case of another rally, we'd stay cautious on strong resistance from 55 day EMA (now at 126.11) to limit upside. On the downside, break of 124.36 support will argue that the rebound has completed and turn bias to the downside. Nevertheless, sustained trading above 55 day EMA will pave the way back to 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 137.39 is possibly just the second leg of the corrective pattern from 109.03. Break of 133.12 resistance should start the third leg to 137.49 and above. Nevertheless, break of 118.62 will resume the decline from 137.49 for 109.03/114.84 support zone instead.

Pivot (invalidation): 1.3065

Our preference Short positions below 1.3065 with targets at 1.3015 & 1.2970 in extension.

Alternative scenario Above 1.3065 look for further upside with 1.3100 & 1.3125 as targets.

Comment A break below 1.3015 would trigger a drop towards 1.2970.

Pivot (invalidation): 1.1455

Our preference Short positions below 1.1455 with targets at 1.1420 & 1.1405 in extension.

Alternative scenario Above 1.1455 look for further upside with 1.1475 & 1.1490 as targets.

Comment As Long as the resistance at 1.1455 is not surpassed, the risk of the break below 1.1420 remains high.

European stock futures are trading higher as the dollar eased off from its highs and the US Treasury yields started to consolidate. Among global equity markets, it is the Australian equity markets which deserve the most attention after staging a stellar performance. Aussie equity markets recorded the biggest jump in more than two years; the rally was supported by the financial sector

US markets also closed higher yesterday and still holding on to their strong gains. The S&P 500 is up 8.70% year-to-date, the NASDAQ index is up 10.3% YTD and the Dow Jones is up 8.20% YTD. There are some genuine concerns that the markets are moving higher without any strong volume behind them and a trend like this doesn't end well

In terms of economic numbers, we have Spanish, German, Italian and Eurozone’s services PMI number due shortly. All the numbers are expected to come in a little soft than their previous reading. The stagnant growth in Italy may keep the number at 50 or below. Disappointment from last week around the German-French number may have some spillover effect today as well. As for the UK, the services PMI is also expected to be soft and the UK’s car industry is to remain under focus after the breaking news from Nissan which is no longer going to have another plant in the UK.

BP’s number came too strong and that is purely due to the strong discipline the firm has around capital spending. BP has made it clear that it has the abilities to beat its rival in an environment when the market conditions for the oil market aren’t that favourable. This is achieved through the effective deployment of capital. To put things in perspective, this number jumped to 11.2% against the reading of 5.8% ban in 2017.

Picking up the high-quality projects is the key and this strategy has paid well. BP reported 4Q adjust net $3.48 billion against the forecast of $2.64 billion, the debt gearing was at 30.3%. The biggest challenge for BP is that the debt levels are still much anchored and this number becomes more of a concern when you look at the competitor sheet. This debt gearing number should not be increased by the company’s own defined limits and given that the frim’s debt gearing crossed above 30%, it is not an encouraging sign.

In other stock news, Alphabet Inc, reported thinner profit and this is because of the higher spending in their cloud business and expanding YouTube. The company fourth quarter’s spending jumped 80 per cent mounting the total of $6.85 billion and this squeezed its operating margin by 3 percent. The operating margin number came in at 21% while the previous reading was 24%. Of course, the hopes are that the increase in capital expenditure which is mainly in the cloud space is going to pay off and it will inflate the bottom line numbers.

Daily Pivots: (S1) 0.8740; (P) 0.8758; (R1) 0.8790; More...

No change in EUR/GBP's outlook despite diminishing upside momentum. With 0.8711 minor support intact, further rise is expected. Break of 38.2% retracement of 0.9101 to 0.8617 at 0.8802 will target 61.8% retracement at 0.8916. On the downside, break of 0.8711 will turn bias back to the downside for 0.8617/20 support 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) 1.5794; (P) 1.5828; (R1) 1.5860; More....

Despite today's sharp fall, EUR/AUD is staying above 1.5721 temporary low. Intraday bias remains neutral first. Further decline is expected with 1.6038 resistance intact. On the downside, break of 1.5721 will extend the fall from 1.6765 to 1.5346 key support. But break of 1.6038 will indicate completion of the fall and turn bias back to the upside.

In the bigger picture, the failure to sustain above 1.6587 key resistance (2015 high) argues that up trend from 1.1602 (2012 low) is not ready to resume yet. But still, as long as 1.5346 support holds, outlook will remain bullish. 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.

GBPUSD closed in the red after six consecutive weekly increases which led the pair above the 200-day moving average (MA) for the first time since May and towards three-month highs. The pair started lower this week as well, with the falling RSI signalling that the downside may continue, although as long as the indicator holds above 50, chances for upside movements are still present. Stochastics are entering the oversold area (below 20), a sign that bullish pressures may not take long to reappear.

A reversal to the upside may see immediate resistance coming first from the 1.3080-1.3150 area and then from the 1.3216 peak. A rally above the latter could continue towards the 1.33 previous resistance level, while higher the next stop could be near the 1.3460 mark.

On the flipside, losses below the 200-day MA, would open the door for the 20-day MA which currently stands at 1.2980. Under that line, the bears may retest the 1.29 round level before dropping to 1.2830, identified by the lows recorded late-January. Further decreases could also challenge the 1.2780-1.2730 congested region.

In the medium-term picture, the rebound off 1.2393 switched the outlook from bearish to neutral. The decreasing distance between the 50- and the 200-day MAs is a positive sign that GBPUSD could turn bullish once the lines clearly cross each other.

Daily Pivots: (S1) 1.1391; (P) 1.1407; (R1) 1.1428; More...

EUR/CHF is staying in consolidation from 1.1429 temporary top. Intraday bias remains neutral first. In case of another fall, downside should be contained by 1.1347 resistance turned support to bring another rally. On the upside, break of 1.1429 will extend the rise from 1.1181 to retest 1.1501 key resistance next.

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, with double bottom pattern (1.1173, 1.1181) Further rise should be seen to 61.8% retracement at 1.1687 and above next.

German Chancellor Angela Merkel indicated that there is still time to find a solution for Brexit before the March 29 deadline. She said in a conference in Tokyo that "from a political point of view, there is still time." But she added "it would be very important to know what exactly the British side envisages in terms of its relationship with the EU."

Also, on the specific problem of Irish backstop, Merkel said "It should be humanly possible to find a solution to such a precise problem. But this depends ... on the kind of trade deal that we forge with each other."

Daily Pivots: (S1) 1.1420; (P) 1.1440; (R1) 1.1457; More.....

Intraday bias in EUR/USD remains neutral at this point. Another rise is mildly in favor with 1.1407 minor support intact. Rise from 1.1289 is seen as another rising leg in the correction pattern from 1.1215. Above 1.1514 will target 1.1569 resistance and above. On the downside, break of 1.1407 minor support will turn bias back to the downside for 1.1289 support instead.

In the bigger picture, as long as 1.1814 resistance holds, down trend down trend from 1.2555 medium term top is still in progress and should target 61.8% retracement of 1.0339 (2017 low) to 1.2555 at 1.1186 next. Sustained break there will pave the way to retest 1.0339. However, break of 1.1814 will confirm completion of such down trend and turn medium term outlook bullish.