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Daily Pivots: (S1) 1.2682; (P) 1.2740; (R1) 1.2773; More....

Intraday bias in GBP/USD remains neutral for the moment. Near term outlook stays bearish for now with 1.2814 resistance intact. On the downside, below 1.2615 minor support will turn bias to the downside for retesting 1.2391 first. Break will extend the down trend from 1.4376 and target 61.8% projection of 1.4376 to 1.2661 from 1.3174 at 1.2114 next. However, firm break of 1.2814 resistance will be an early sign of trend reversal and bring stronger rebound back to 1.3174 resistance next.

In the bigger picture, whole medium term rebound from 1.1946 (2016 low) should have completed at 1.4376 already, after rejection from 55 month EMA. The structure and momentum of the fall from 1.4376 argues that it's resuming long term down trend from 2.1161 (2007 high). And this will now remain the preferred case as long as 1.3174 structural resistance holds. GBP/USD should target a test on 1.1946 first. Decisive break there will confirm our bearish view.

The euro is struggling to break higher against the US dollar currency, as buyers fail to close the daily candle above the pairs key 100-day moving average. Despite the failure to break the 1.1500 barrier, the EURUSD pair remains well-bid on pullbacks towards the 1.1400 support level. Traders now await the release of German export data and the official eurozone unemployment this morning.

The EURUSD pair is intraday bullish while trading above the 1.1480 level, key technical resistance is found at 1.1500 and 1.1550 levels.

If the EURUSD pair trades below the 1.1430 level, sellers are increasingly likely to test the 1.1410 and 1.1360 support levels

The British pound has moved back towards the pivotal 1.2740 level against the US dollar after buyers failed to break above the 1.2810 resistance level. The current intraday sentiment surrounding the GBPUSD pair is neutral, although in the short-term buyers have the upper hand while price trades above the 1.2660 level. The MACD indicator on the daily time frame is approaching neutral levels, while the Momentum indicator is starting to turn lower.

The GBPUSD pair only intraday bullish while trading above the 1.2780 level, key technical resistance is found at the 1.2810 and 1.2900 levels.

If the GBPUSD pair trades under the 1.2700 level, sellers are likely to test the 1.2660 and 1.2600 levels.

Daily Pivots: (S1) 0.9790; (P) 0.9812; (R1) 0.9837; More...

USD/CHF is staying in range above 0.9789. Intraday bias stays neutral for the moment. The corrective fall from 1.0128 is still in progress and might extend lower. But downside should be contained by 0.9765/8 cluster support (61.8% retracement of 0.9541 to 1.0128 at 0.9765, 38.2% retracement of 0.9186 to 1.0128 at 0.9768) to bring rebound. On the upside, break of 0.9920 minor resistance will suggest that such correction has completed and turn bias to the upside for retesting 1.0128 resistance. However, sustained break of 0.9765/8 will bring deeper fall back to 0.9541 support next.

In the bigger picture, while the fall from 1.0128 was slightly deeper than expected, the structure suggests it's a corrective move. As long as 0.9765/8 cluster support (61.8% retracement of 0.9541 to 1.0128 at 0.9765, 38.2% retracement of 0.9186 to 1.0128 at 0.9768) holds, we'd expect up trend from 0.9541 and 0.9186 to resume later through 1.0128. However firm break of 0.9765/8 will argue that the trend has reversed. Further break of 0.9541 support will confirm this bearish scenario and bring deeper fall back to 0.9186 low.

Ethereum continues to hold firm around the $150.00 level, despite bearish fundamental developments surrounding the ETHUSD pair on Tuesday. Buying momentum is growing in the short and medium-term, with the ETHUSD pair also exhibiting the formation of a bullish cup and handle pattern on the lower time frames. Only a strong move below the $138.00 support level can negate upside pressures.

The ETHUSD pair is bullish while trading above the $138.00 level, key resistance is found at the $172.00 and $195.00 levels.

If ETHUSD pair trades below the $138.00 level, sellers may test towards the $125.00 and $108.00 support levels.

Daily Pivots: (S1) 108.42; (P) 108.76; (R1) 109.07; More..

Intraday bias in USD/JPY stays mildly on the upside as rebound from 104.69 is in progress. But upside will likely be limited by 109.46 minor resistance. On the downside, below 106.74 minor support will turn bias to the downside for 104.62 low. Overall, larger downtrend from 118.65 (2016 high) is expected to resume finally through 104.62 after current consolidation from 104.69 completes.

In the bigger picture, price actions from 125.85 (2015 high) are seen as a long term corrective pattern, no change in this view. Apparently, such corrective pattern is not completed yet. Fall from 114.54 is seen as part of the falling leg from 118.65 (2016 high). Break of 104.62 will target 100% projection of 118.65 to 104.62 from 114.54 at 100.51, which is close to 100 psychological level. But in that case, we'd expect strong support from 98.97 to contain downside to bring reversal. Also, this bearish case will remain the preferred one as long as 114.54 resistance holds.

For the 24 hours to 23:00 GMT, the EUR declined 0.06% against the USD and closed at 1.1444, after an unexpected drop in Germany's industrial output raised fears of a prolonged slowdown in the euro area.

Macroeconomic data indicated that the Euro-zone's final consumer confidence index dropped to a level of -6.2 in December, in line with market expectations and confirming the preliminary print. In the previous month, the index had recorded a level of -3.9. Moreover, the region's economic sentiment indicator declined to a 2-year low level of 107.3 in December, overshooting market consensus for a drop to a level of 108.2. In the preceding month, the economic sentiment indicator had recorded a level of 109.5. Additionally, the business climate indicator fell to a level of 0.82 in December, declining to its lowest level since May 2017 and compared to a revised level of 1.04 in the prior month. Market participants had anticipated the business climate indicator to ease to a level of 1.0.

Separately in Germany, the seasonally adjusted industrial production unexpectedly declined 1.9% on a monthly basis in November, driven by a sharp decline in consumer goods and energy output and defying market expectations for a gain of 0.3%. Industrial production had registered a revised drop of 0.8% in the previous month.

In the US, data indicated that the US small business optimism index slid to a level of 104.4 in December, compared to market consensus for a fall to a level of 103.0. The index had recorded a level of 104.8 in the previous month.

On the other hand, the nation's consumer credit recorded a rise of $22.2 billion, helped by rise in student and auto loans and higher than market expectations for a rise of $17.5 billion. In the prior month, consumer credit had registered a climb of $25.4 billion.

In the Asian session, at GMT0400, the pair is trading at 1.1455, with the EUR trading 0.10% higher against the USD from yesterday's close.

The pair is expected to find support at 1.1428, and a fall through could take it to the next support level of 1.1402. The pair is expected to find its first resistance at 1.1475, and a rise through could take it to the next resistance level of 1.1496.

Moving forward, traders would closely monitor the Euro-zone's unemployment rate and Germany's trade balance data, both for November, slated to release in a few hours. Later in the day, the US FOMC meeting minutes along with trade balance data for November, will keep traders on their toes.

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

For the 24 hours to 23:00 GMT, the GBP declined 0.41% against the USD and closed at 1.2721.

In economic news, UK's Halifax house price index rose 1.3% in the three months ended December 2018, rising at its quickest pace in two-years and compared to an advance of 0.3% in the September-November 2018 period. Markets participants had anticipated the index to record a gain of 0.4%.

In the Asian session, at GMT0400, the pair is trading at 1.2736, with the GBP trading 0.12% higher against the USD from yesterday's close.

The pair is expected to find support at 1.2696, and a fall through could take it to the next support level of 1.2657. The pair is expected to find its first resistance at 1.2786, and a rise through could take it to the next resistance level of 1.2837.

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

Daily Pivots: (S1) 0.7120; (P) 0.7136; (R1) 0.7155; More...

AUD/USD edges higher to 0.7171 as rebound from 0.6722 short term bottom extends. Upside momentum is diminishing as seen in 4 hour MACD. But with 0.7026 minor support intact, further rise is still expected. Nevertheless, upside should be limited below 0.7393 resistance. On the downside, break of 0.7026 minor support will turn bias back to the downside for retesting 0.6722 low. Overall, larger down trend from 0.8135 is expected to resume later after consolidation completes.

In the bigger picture, the failure to sustain below 0.6826 (2016 low) suggests that the long term down trend is now ready to resume yet. But prior rejection by 55 week EMA indicates underlying medium term bearishness in the pair. Outlook will also stay bearish as long as 0.7393 resistance holds. On the downside, sustained break of 0.6826 will target 0.6008 (2008 low).

For the 24 hours to 23:00 GMT, the USD rose 0.11% against the JPY and closed at 108.81.

In the Asian session, at GMT0400, the pair is trading at 108.88, with the USD trading 0.06% higher against the JPY from yesterday’s close.

The pair is expected to find support at 108.52, and a fall through could take it to the next support level of 108.15. The pair is expected to find its first resistance at 109.17, and a rise through could take it to the next resistance level of 109.45.

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