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For the 24 hours to 23:00 GMT, the GBP rose 0.54% against the USD and closed at 1.2961, on the back of upbeat jobs data.

On macro front, data showed that UK's ILO unemployment rate unexpectedly dropped to 4.0% in the September-November 2018 period, compared to a reading of 4.1% in the August-October 2018 period. Market participants had anticipated the ILO unemployment rate to record a steady reading. Additionally, average earnings including bonus rose 3.4% on an annual basis in the September-November 2018 period, more than market expectations and compared to a rise of 3.3% in the August-October 2018 period. Meanwhile, the nation's public sector net borrowing deficit narrowed to a level of £2.1 billion in December, from a revised deficit of £6.3 billion in the previous month.

In the Asian session, at GMT0400, the pair is trading at 1.2952, with the GBP trading 0.07% lower against the USD from yesterday's close.

The pair is expected to find support at 1.2880, and a fall through could take it to the next support level of 1.2809. The pair is expected to find its first resistance at 1.2999, and a rise through could take it to the next resistance level of 1.3047.

Moving ahead, traders would await UK's CBI total trends orders for January, set to release in a few hours.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the USD declined 0.18% against the JPY and closed at 109.33.

In the Asian session, at GMT0400, the pair is trading at 109.71, with the USD trading 0.35% higher against the JPY from yesterday’s close.

Overnight data showed that Japan’s (total) trade deficit narrowed to a level of ¥55.3 billion in December, amid decline in exports for the first time in 2 years and following a deficit of ¥737.7 billion in the prior month. Market participants had envisaged the nation to record a deficit of ¥35.3 billion.

Earlier in the session, the Bank of Japan, held its benchmark interest rate unchanged at -0.10%. Meanwhile, the central bank slashed its quarterly inflation outlook, amid mounting trade tensions and global uncertainty. However, the bank upgraded its economic growth forecast to 0.9% for the year starting April, from 0.8%.

The pair is expected to find support at 109.31, and a fall through could take it to the next support level of 108.90. The pair is expected to find its first resistance at 109.96, and a rise through could take it to the next resistance level of 110.20.

Trading trend in the Japanese Yen today is expected to be determined by Japan’s machine tool orders for December, scheduled to release in a while.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the USD slightly declined against the CHF and closed at 0.9971.

In the Asian session, at GMT0400, the pair is trading at 0.9975, with the USD trading marginally higher against the CHF from yesterday’s close.

The pair is expected to find support at 0.9962, and a fall through could take it to the next support level of 0.9949. The pair is expected to find its first resistance at 0.9987, and a rise through could take it to the next resistance level of 0.9999.

The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.

Sentiments in Asian markets stabilized today despite the selloff in US overnight. However, rebound in Asia is rather weak. Nikkei indeed closed down -0.14% while other major indices fluctuate between gains and losses.

In the currency markets, New Zealand leads the way higher, additionally boosted by solid CPI data. Australian and Canadian are the next strongest. Yen is back under pressure after BoJ revised fiscal 2019 inflation forecasts steeply. Swiss Franc follow as the second weakest.

In Asia:

• Nikkei closed down -0.14% at 20593.72.
• Hong Kong HSI is up 0.02%.
• China SSE is up 0.01%.
• Singapore Strait Times is down -0.48%.
• Japan 10-year JGB yield is up 0.0016 at 0.003, turned positive.

Overnight in the US:

• DOW dropped -1.22%.
• S&P 500 dropped -1.42%.
• NASDAQ dropped -1.91%.
• 10-year yield dropped -0.054 to 2.730.

For the 24 hours to 23:00 GMT, the USD rose 0.41% against the CAD and closed at 1.3354.

In economic news, Canada's manufacturing shipments declined 1.4% on a monthly basis in November, higher than market expectations for a fall of 1.0%. In the preceding month, manufacturing shipments had registered a drop of 0.1%

In the Asian session, at GMT0400, the pair is trading at 1.3329, with the USD trading 0.19% lower against the CAD from yesterday's close.

The pair is expected to find support at 1.3300, and a fall through could take it to the next support level of 1.3270. The pair is expected to find its first resistance at 1.3359, and a rise through could take it to the next resistance level of 1.3388.

Going ahead, traders would closely monitor Canada's retail sales for November, set to release later in the day.

The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average

For the 24 hours to 23:00 GMT, the AUD declined 0.36% against the USD and closed at 0.7124.

LME Copper prices declined 0.4% or $25.0/MT to $5926.5/MT. Aluminium prices rose 1.4% or $25.0/MT to $1867.5/MT.

In the Asian session, at GMT0400, the pair is trading at 0.7136, with the AUD trading 0.17% higher against the USD from yesterday's close.

Overnight data revealed that Australia's Westpac leading index slid 0.21% on a monthly basis in December, following a decline of 0.09% in the prior month.

The pair is expected to find support at 0.7118, and a fall through could take it to the next support level of 0.7100. The pair is expected to find its first resistance at 0.7152, and a rise through could take it to the next resistance level of 0.7168.

Looking ahead, investors would await Australia's CBA manufacturing and services PMI's for January, scheduled to release overnight.

The currency pair is trading in between its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, Gold rose 0.58% against the USD and closed at USD1284.70 per ounce, amid mounting US-China trade tensions, following reports that the US has cancelled a meeting with Chinese officials.

In the Asian session, at GMT0400, the pair is trading at 1283.60, with gold trading 0.09% lower against the USD from yesterday’s close.

The pair is expected to find support at 1278.50, and a fall through could take it to the next support level of 1273.40. The pair is expected to find its first resistance at 1286.90, and a rise through could take it to the next resistance level of 1290.20.

The yellow metal is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.

For the 24 hours to 23:00 GMT, Silver rose 0.82% against the USD and closed at USD15.36 per ounce, tracking gains in gold prices.

In the Asian session, at GMT0400, the pair is trading at 15.38, with silver trading 0.10% higher against the USD from yesterday’s close.

The pair is expected to find support at 15.25, and a fall through could take it to the next support level of 15.13. The pair is expected to find its first resistance at 15.44, and a rise through could take it to the next resistance level of 15.51.

The white metal is trading above its 20 Hr and 50 Hr moving average.

For the 24 hours to 23:00 GMT, Crude Oil declined 0.67% against the USD and closed at USD53.03 per barrel, amid escalating worries over energy demand. Also, the Energy Information Administration report projected a rise in oil output from seven major US shale players by 62,000 barrels a day to 8.18 million barrels per day in the next month.

In the Asian session, at GMT0400, the pair is trading at 53.04, with oil trading a slightly higher against the USD from yesterday’s close.

The pair is expected to find support at 52.12, and a fall through could take it to the next support level of 51.19. The pair is expected to find its first resistance at 53.89, and a rise through could take it to the next resistance level of 54.73.

Crude oil is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.

EUR/USD declined heavily recently and tested the 1.1335 zone. USD/CHF remained in a solid uptrend, but it is struggling to break the 0.9985-0.9990 resistance area.

Important Takeaways for EUR/USD and USD/CHF

• The Euro declined below the 1.1400 and 1.1360 support levels against the US Dollar.
• There is a major contracting triangle formed with resistance near 1.1370 on the hourly chart of EUR/USD.
• USD/CHF climbed higher sharply and traded towards the key 1.0000 resistance zone.
• There is a crucial bullish trend line formed with support at 0.9970 on the hourly chart.

EUR/USD Technical Analysis

The Euro started a major decline from well above the 1.1500 resistance area against the US Dollar. The EUR/USD pair declined below the 1.1480, 1.1440, 1.1400 and 1.1380 support levels.

The decline was such that the pair even settled below 1.1400 and the 50 hourly simple moving average. A new weekly low was formed at 1.1335 on FXOpen before the pair started an upside correction.

It moved above the 1.1350 level and the 23.6% Fib retracement level of the last decline from the 1.1409 high to 1.1335 low. However, the upside move was capped by the 1.1370-1.1380 resistance area and the 50 hourly SMA.

Moreover, there was a failure near the 50% Fib retracement level of the last decline from the 1.1409 high to 1.1335 low. Besides, there is a major contracting triangle formed with resistance near 1.1370 on the hourly chart of EUR/USD.

At the moment, it seems like the pair is about to break the triangle resistance, 1.1380, and the 50 hourly simple moving average. A successful close could open the doors for a short term correction towards the 1.1400 and 1.1415 resistance levels.

On the other hand, if the pair fails to move past 1.1380 and 1.1400, it may perhaps resume its decline towards the 1.1340 and 1.1310 support levels in the near term.

USD/CHF Technical Analysis

The US Dollar gained a lot of bullish momentum recently above the 0.9900 resistance level against the Swiss franc. The USD/CHF pair traded above the 0.9940 and 0.9950 resistance levels to move into a positive zone.

The recent uptrend was solid as the pair settled above the 0.9960 level and the 50 hourly simple moving average. The pair close to the 1.0000 barrier and a high was formed at 0.9987. Later, the pair started a downside correction and traded below the 0.9980 level.

It broke the 23.6% Fib retracement level of the recent wave from the 0.9931 low to 0.9987 high. However, there are many supports on the downside near the 0.9960 and 0.9950 levels. Moreover, there is a crucial bullish trend line formed with support at 0.9970 on the hourly chart of USD/CHF.

Below the trend line support, the 50% Fib retracement level of the recent wave from the 0.9931 low to 0.9987 high is at 0.9955. Therefore, if the pair dips from the current levels, it could find a strong buying interest near the 0.9965, 0.9960, 0.9955 and 0.9950 levels.

On the upside, a break above the 0.9990 and 1.0000 levels may set the pace for more gains towards 1.0050 level in the coming sessions