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Daily Pivots: (S1) 0.8676; (P) 0.8730; (R1) 0.8762; More...

Intraday bias in EUR/GBP remains on the downside as fall from 0.9101 is in progress. Deeper decline should be seen to 0.8620/55 support zone. We'd expect strong support from there to bring near term reversal. On the upside, above 0.8782 minor resistance will turn intraday bias neutral first. But break of 0.8862 resistance is needed to confirm short term bottoming. Otherwise, further fall is still expected in case of recovery.

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 break out of 0.8620 will pave the way back to 0.8302/12 support zone. Break of 0.9101 will bring retest of 0.9304/5 resistance.

Daily Pivots: (S1) 1.5893; (P) 1.5934; (R1) 1.5977; More....

EUR/AUD's recovery continues today but is limited well below 1.6154 resistance. Intraday bias remains neutral and further decline is still expected. On the downside, break of 1.5774 will resume the fall from 1.6765 and target 1.5346 key support. However, break of 1.6154 will turn intraday bias back to the upside for retesting 1.6765 instead.

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.

The divorce will be delayed in order to avoid the disorderly Brexit, this what traders have priced in. The Sterling -dollar pair is sitting at 1.30 mark and the chances are that the pair is likely to move higher-- soon we have a firm answer on this. Creating unnecessary tensions is the habit of prime minister because after her defeat it was pretty much clear that if the date for Brexit isn’t moved, there is only one outcome- a disaster for the economy. Members with significant authority from German and French government have shown their willingness to extend the Brexit as long as Theresa May takes the anti-toxic substance. Her hand is forced in the parliament to move in this direction by pro-EU members of her party and eurosceptics who still believe that they can bring her government down.

Back in the equity markets, European markets and US futures are trading higher as investors are little optimistic about the corporation of the two big countries: US and China, in order to resolve the issues the trade war. The S&P500 index is still holding on to its solid yearly gain of 5.26% while the price is testing its 50-day moving average; a break of this could be negative for the market. As for the Dow Jones and Nasdaq, both of them are also still holding higher with gains of 5.35% and 5.89%. Investors are also keeping a close eye on the partial US government situation and awaiting the outcome of the Senate vote due today to open the government. From the outset, it doesn’t look like that any favourable results will be achieved because of the lack of the willingness from both sides.

In terms of stock news, the biggest headline is for Apple, it has used the excuse of restructuring to dismiss nearly 200 people from its very important project called Titan, a project which is focused on cars. There is no doubt that Apple lacks innovation massively and there is no new product except iPhone which is in their crown jewel. If the company really wants to continue its growth it needs to make that innovation stays at its heart of the foundation. The one month implied volatility sits at 33% and the trading volume was 49% the 20-day average. The stock is still trading at 13 times its estimated earn earning

Today is also a big day for euro traders, the European Central Bank is meeting and will announce its monetary policy. The intriguing element is if they are going to provide any further evidence about the on-going slow down in the economy, and most importantly, if they are going to acknowledge it. The biggest wildcard for today’s meeting is: If the ECB is going to say anything about the extension of the TLTRO, an easing monetary policy measure. If they did, it means even lower euro where it is trading today.

The Aussie fell sharply in Asia on Thursday following short-lived advance to 0.7166 on better than expected Australian jobs data, coming under increased pressure after NAB raised domestic mortgage rates.

Fresh bearish acceleration broke below 20SMA (0.7125) that contained the action of past two days and opened way towards support at 0.7033 (Fibo 38.2% of 0.6706/0.7235).

Momentum is breaking into negative territory on daily chart and supports the notion, while slow stochastic continues to heads south in deep oversold zone and lacks for now any positive signal.

Broken 20SMA marks initial resistance, ahead of 10SMA (0.7170) which should cap extended upticks and keep bears in play.

Caution on lift above 10SMA as daily cloud twists on Friday and could attract bulls.

Res: 0.7125, 0.7170, 0.7186, 0.7235
Sup: 0.7033, 0.7000, 0.6970, 0.6908

Daily Pivots: (S1) 1.1316; (P) 1.1330; (R1) 1.1343; More...

Intraday bias in EUR/CHF remains neutral at this point. On the upside, firm break of 1.1348 resistance should confirm that choppy decline from 1.1501 has completed at 1.1181 already. In that case, further rally would be seen towards 1.1501 resistance. On the downside, break of 1.1298 minor support will turn bias to the downside for deeper fall. But we'd expect strong support from 1.1154/98 support zone to contain downside to bring rebound.

In the bigger picture, price actions from 1.2004 medium term top is seen as a correction only. Downside should be contained by support zone of 1.1198 (2016 high) and 61.8% retracement of 1.0629 to 1.2004 at 1.1154 to complete it and bring rebound. A break of 1.2 key resistance is still expected in the medium term long term. However, sustained break of the mentioned support zone will mark reversal of the long term trend. In that case, 1.0629 key support will be back into focus.

Pivot (invalidation): 52.95

Our preference Short positions below 52.95 with targets at 51.85 & 51.30 in extension.

Alternative scenario Above 52.95 look for further upside with 53.35 & 53.65 as targets.

Comment The RSI is mixed to bearish.

Pivot (invalidation): 15.2400

Our preference Long positions above 15.2400 with targets at 15.4300 & 15.5100 in extension.

Alternative scenario Below 15.2400 look for further downside with 15.1600 & 15.0900 as targets.

Comment The RSI is mixed to bullish.

Pivot (invalidation): 1279.75

Our preference Long positions above 1279.75 with targets at 1286.50 & 1290.00 in extension.

Alternative scenario Below 1279.75 look for further downside with 1276.50 & 1274.00 as targets.

Comment The RSI is mixed to bullish.

Pivot (invalidation): 2653.00

Our preference Short positions below 2653.00 with targets at 2616.75 & 2596.00 in extension.

Alternative scenario Above 2653.00 look for further upside with 2665.00 & 2676.00 as targets.

Comment The RSI is mixed to bearish.

Pivot (invalidation): 11140.00

Our preference Short positions below 11140.00 with targets at 11029.00 & 10990.00 in extension.

Alternative scenario Above 11140.00 look for further upside with 11189.00 & 11216.00 as targets.

Comment The index currently faces a challenging resistance area at 11140.00.