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The British Pound has appreciated about 2.69% against the Canadian Dollar since the beginning of December. The currency pair tested the upper boundary of a descending channel pattern at 1.7178 during the end of last week trading session.

Currently, the exchange rate is near a resistance cluster formed by the 50-,100-, and 200-hour SMAs and the combination of the weekly PP and the 38.20% Fibonacci retracement level at 1.6973.

If the cluster holds, the currency exchange rate will aim at a support level set by the weekly and the monthly PPs at 1.6783.

Meanwhile, it is important to note that the political situation in the United Kingdom might play a significant roll in the positioning of the currency exchange rate during this week trading sessions.

Notes/Observations

• UK Parliament Brexit Parliament vote still on for Tuesday, Dec 11th (tomorrow); PM May faces certain defeat; Leadership challenge could emerge; myriad of scenarios remain on the table after tomorrow's vote
• European Court of Justice (ECJ) ruling on the reversibility of Article 50 stated that UK could unilaterally revoke Brexit
• ECB decision on Thursday, analysts expect a "dovish tightening"; expected to confirm that QE will end at the end of the calendar year.
• US Nov CPI data set for release on Wednesday seen as key for pricing the Fed rate path

Asia:

• Japan Q3 Final GDP revised lower with annualized contraction at its fastest pace since 2014 ( Q/Q: -0.6% v -0.5%E; Annualized Q/Q: -2.5% v -2.0%e)
• China Nov CPI misses expectations (Y/Y: 2.2% v 2.4%e)
• China Nov Trade Balance registers a larger surplus as components disappoint (: Trade: $44.8B v $34.0Be; Exports YoY: 5.4% v 9.9%e; Imports o/Y: 3.0% v 14.0%e; trade surplus with U.S. widens to $35.5B

Europe:

• PM May said to have held emergency talks with EU leaders Sunday on possibility of postponing Brexit vote Tuesday, which is expected to fail
• UK Brexit Sec Barclay: PM May will not delay Brexit vote on Dec 11th, even though the government faced almost certain defeat
• PM May: If parliament rejected her Brexit deal, it could leave Britain in the European Union and bring the opposition Labour Party to power
• UK PM May expected to face 48 MP letters this week which would trigger a leadership battle
• UK Labour party lining up rebel Tories for no confidence vote against PM May if the Brexit vote fails in Parliament
• France President Macron expected to announce tax cuts and subsidies to lower income families in order to try and quiet the rioting
• Merkel ally Annegret Kramp-Karrenbauer elected head of Germany's CDU

Americas:

• US Trade Rep Lighthizer: US/China trade negotiations need to reach a successful end by March 1st or new tariffs will be imposed - White House Chief of Staff Kelly confirmed he would step down; President Trump would not bring on Ayers to replace him (unable to commit to 2-years)

Macro

• (JP) Japan: Q3 GDP fell -2.5% in the final release compared to the preliminary reading of -1.2%. The sizable downward revision was driven by a drop in private capital expenditures. The downwght forward by pro-remainers in the U.K. and also contested by the EU, where officials feared that the right to unilaterally stop the withdrawal process could lead to an abuse of the process.
• (UK) United Kingdom: Tomorrow's Brexit vote remains the only domestic focus. The prime minister affirmed will be taking place despite reports of it being delayed, and is widely expected to see the deal voted down. Labour, the LibDem's, DUP, SNP, and significant numbers of Conservative Party MPs (reportedly over 100 at the last count) are all set to vote against it. If tard revision to Q3 exceeded market expectations and almost completely offset the 2.8% jump in Q2 GDP. As a reminder GDP fell -1.3% in Q1.
• (UK) United Kingdom: The European Court of Justice ruled earlier that the U.K. could revoke Article 50 unilaterally any time before March 29. The decision was expected after the advocate general issued a similar opinion last week. Both sides had sought clarification on the issue, brouhe deal is rejected, it would immediately create scope for multitude scenarios in the coming weeks depending on the scale of defeat.
• (DE) Germany: October's trade surplus was small higher m/m at EUR 17.3B. Exports rose 0.7% m/m after falling -0.4% in the prior month, but a 1.3% m/m jump in imports still made for a smaller overall surplus. Accumulated data for the year to date shows a similar picture, with exports up 4.1% y/y, but imports an even stronger 6.6% y/y, leaving the accumulated surplus at EUR 195.2B, down from EUR 205.7B y/y.

SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM

Equities

• Indices [Stoxx600 -0.88% at 342.42, FTSE -0.47% at 6,746.25, DAX -0.66% at 10,716.38, CAC-40 -0.58% at 4,784.99, IBEX-35 -0.60% at 8,762.35, FTSE MIB -0.50% at 18,648.50, SMI -0.91% at 8,642.50, S&P 500 Futures -0.40%]
• Market Focal Points/Key Themes: European Indices trade lower across the board tracking weaker US markets on Friday and lower futures this morning as geopolitical tensions continue to weigh. On the corporate front shares of Poyry trade over 40% higher after its to be acquired by AF for €10.20/shr; Avacta also trades higher after signing a $310M deal with LG Chem. BASF trades sharply lower following its outlook mainly attributable to the chemical sector; Air France also rises as November Traffic rises. In other news Just Group trades over 20% higher following the publication of PRA PS 31/18, confirming the transitional relief for pre-2016 business. Interserve trades over 50% lower after acknowledging press reports it plans to deleverage its balance sheet. On the banking front, HSBC and Standard Chartered in focus after being named among the banks mislead by Huawei over Iran.

Equities

• Consumer discretionary: Air France-KLM [AF.FR] +1.5% (load factor), Poyry [POY1V.FI] +44% (to be acquired), Photo-Me International [PHTM.UK] -10% (earnings), ISS A/S [ISS.DK] +1.5% (presents strategy update)
• Consumer staples: ICA Gruppen [ICA.SE] -1% (November same-store sales)
• Energy: Amerisur Resources [AMER.UK] +15% (oil discovery)
• Financials: Just Group [JUST.UK] +22% (notes Policy Statement)
• Healthcare: NMC Health [NMC.UK] +1% (trading update), Avacta Group [AVCT.UK] +29%, IP Group [IPO.UK] -2% (Avacta Group signs deal), PureTech Health [PRTC.UK] -1% (collaboration with Bristol-Myers Squibb)
• Industrials: BASF AG [BAS.DE] -4.5%, Covestro [1COV.DE] -2.5% (BASF profit warning), Continental AG [CON.DE] -2% (CEO interview comments), Renault [RNO.FR] -2% (ex-Chairman of alliance with Nissan re-arrested), Interserve [IRV.UK] -50% (notes press speculation), Airbus Group [AIR.FR] -1% (gross orders)
• Technology: MorphoSys [MOR.DE] +3% (analyst action)

Speakers

• EU Court Ruling on the reversibility of Article 50; UK could unilaterally revoke Brexit
• UK Environment Min Gove: Brexit meaningful vote would go ahead as planned on Tuesday. He believed that PM May could win the vote as she was bettered placed than anyone to get improvement on Brexit terms. Extremely unlikely that he would be in leadership contest; talk about leadership challenge was a distraction
• France Fin Min Le Maire stated that current protests would impact Q4 GDP by 0.1%
• Sweden Center party Loof: Results of talks with Social Democrats were not enough; to vote against Stefan Lofven as PM and not approve the Govt transition budget

Currencies/Fixed Income

• The USD began the session on soft footing with political and rate outlook playing a factor.
• Goldman strategist Hatzius adjusted his Fed outlook with a more dovish spin and now called for less than a 50% probability of a rate in March. US Nov CPI data set for release on Wednesday seen as key for pricing the Fed rate path
• The revolving door in the Trump Administration continued with Chief of Staff Kelly leaving and top contender Ayers (currently Pence chief of Staff) would not commit to a 2-year term
• The GBP currency remained focused on the UK Parliament Brexit Parliament vote which was still set for Tuesday, Dec 11th (tomorrow); PM May said to face certain defeat and a leadership challenge could emerge. Analysts noted that a myriad of scenarios remained on the table after tomorrow's vote. The GBP did see a brif pop higher to approach the 1.2770 area after the European Court of Justice (ECJ) ruling on the reversibility of Article 50 what stated that the UK could unilaterally revoke Brexit. However, the upcoming Parliament vote on Brexit was a headwind for the GBP sterling currency.
• EUR/USD was higher by 0.3% and holding above the 1.14 level. Dealers were looking ahead to ECB decision on Thursday with analysts expecting a "dovish tightening". ECB was; expected to confirm that QE would end in Dec but policy would remain accommodative

Economic Data

• (NL) Netherlands Oct Manufacturing Production M/M: +0.4% v -0.2% prior; Y/Y: 3.4% v 3.1% prior; Industrial Sales Y/Y: 10.6% v 4.2% prior
• (CH) Swiss Nov Unemployment Rate: 2.5% v 2.5%e; Unemployment Rate (Seasonally Adj): 2.4% v 2.5%e
• (DE) Germany Oct Current Account Balance: €15.9B v €18.8Be; Trade Balance: €18.3B v €17.1B; Exports M/M: +0.7% v +0.4%e; Imports M/M: +1.3% v +0.5%e
• (DK) Denmark Oct Current Account Balance (DKK): 11.7B v 12.3B prior; Trade Balance: 5.8B v 5.3B prior
• (DK) Denmark Nov CPI M/M: -0.3% v -0.3%e; Y/Y: 0.8% v 0.8%e
• (DK) Denmark Nov CPI EU Harmonized M/M: -0.3% v -0.3%e; Y/Y: 0.7% v 0.8%e
• (NO) Norway Nov CPI M/M: 0.5% v 0.1%e; Y/Y: 3.5% v 3.1%e
• (NO) Norway Nov CPI Underlying M/M: 0.3% v 0.0%e; Y/Y: 2.2% v 1.9%e
• (NO) Norway Nov PPI (including Oil) M/M: -3.2% v +3.6% prior; Y/Y: 14.9% v 22.5% prior
• (FI) Finland Oct Industrial Production M/M: -2.5% v +2.3% prior; Y/Y: 0.8% v 6.1% prior
• (TR) Turkey Q3 GDP Q/Q: -1.1% v -1.2%e; Y/Y: 1.6% v 2.2%e
• (FR) Bank of France Nov Industrial Sentiment: 101 v 103e
• (SE) Sweden Dec SEB Housing Price Indicator: 10 v 13 prior
• (CZ) Czech Nov CPI M/M: -0.1% v -0.1%e; Y/Y: 2.0% v 2.0%e
• (CZ) Czech Nov Unemployment Rate: 2.8% v 2.8%e
• (NG) Nigeria Q3 GDP Y/Y: 1.8% v 1.9%e
• (SE) Sweden Oct Household Consumption M/M: -0.2% v -0.1% prior; Y/Y: -0.3% v +0.3%e
• (CH) Swiss Weekly Total Sight Deposits (CHF): 576.4B v 576.9B prior; Domestic Sight Deposits: 472.5B v 472.0B prior
• (IT) Italy Oct Industrial Production M/M: +0.1% v -0.3%e; Y/Y: +4.2% v -1.6% prior; Industrial Production WDA Y/Y: 1.0% v 1.0%e
• (EU) Euro Zone Dec Sentix Investor Confidence: -0.3 v +8.3e )lowest since Dec 2014)
• (UK) Oct Visible Trade Balance: -£11.9B v -£10.5Be; Overall Trade Balance: -£3.3B v -£1.3B; Trade Balance Non EU: -£4.3B v -£3.2Be
• (UK) Oct GDP M/M: 0.1% v 0.1%e
• (UK) Oct Industrial Production M/M: -0.6% v +0.1%e; Y/Y: -0.8% v -0.1%e
• (UK) Oct Manufacturing Production M/M: -0.9% v 0.0%e; Y/Y: -0.8% v 0.0%e
• (UK) Oct Construction Output M/M: -0.2% v -0.5%e; Y/Y: 3.8% v 3.3%e
• (UK) Oct Index of Services M/M: 0.2% v 0.1%e; 3M/3M: 0.3% v 0.3%e
• (GR) Greece Oct Industrial Production Y/Y: -1.1% v +1.8% prior
• (GR) Greece Nov CPI Y/Y: 1.0% v 1.8% prior; CPI EU Harmonized Y/Y: 1.1% v 1.8% prior

Fixed Income Issuance

• None seen

Looking Ahead

• (IL) Israel Central Bank Nov Minutes
• (MX) Mexico Nov Nominal Wages: No est v 3.8% prior
• (UR) Ukraine Nov CPI M/M: No est v 1.7% prior; Y/Y: No est v 9.5% prior
• (SE) Sweden Central Bank (Riksbank) Dep Gov Skingsley
• (DE) German Chancellor Merkel attends Conference to Endorse UN Compact on Migration
• 05:25 (BR) Brazil Central Bank Weekly Economists Survey
• 05:30 (NL) Netherlands Debt Agency (DSTA) to sell 6-month Bills
• 06:00 (IL) Israel Nov Consumer Confidence: No est v 127 prior
• 06:00 (PT) Portugal Oct Trade Balance: No est v -€1.2B prior
• 06:00 (IL) Israel to sell Bonds
• 06:00 (RO) Romania to sell RON600M in 2.3% 2020 Bonds
• 06:30 (TR) Turkey Central Bank TCMB Survey of Expectations: 12-month inflation expectation: No est v 17.4% prior
• 06:45 (US) Daily Libor Fixing
• 07:00 (CZ) Czech Central Bank to comment on CPI data
• 07:00 (IN) India announces details of upcoming bond sale (held on Fridays)
• 07:30 (IT) ECB's Angeloni (SSM member)
• 08:10 (UK) Baltic Dry Bulk Index
• 08:15 (CA) Canada Nov Annualized Housing Starts: 198.0Ke v 205.9K prior
• 08:30 (CA) Canada Oct Building Permits M/M: -0.3%e v +0.4% prior
• 08:50 (FR) France Debt Agency (AFT) to sell combined €2.4-3.6B in 3-month, 6-month BTF Bills
• 09:30 (EU) ECB announces Covered-Bond Purchases
• 10:00 (US) Oct JOLTS Job Openings: 7.100Me v 7.009M prior
• 11:30 (US) Treasury to sell 3-Month and 6-Month Bills
• 13:00 (CA) Bank of Canada (BOC) Lane
• 14:00 (FR) France President Macron addresses nation

The US dollar has started the new trading week under pressure against the Japanese yen, following the weaker than expected monthly US jobs report on Friday. The intraday sentiment surrounding the USDJPY pair is heavily bearish while trading below the 112.20 support level. It is worth noting that a larger head and shoulders pattern may also be forming across the four-hour time frame.

The USDJPY pair is strongly bearish while trading below the 112.20 level, key support is found at the 111.50 and 111.32 levels.

If the USDJPY pair trades above the 112.55 level, key resistance is found at the 113.00 and 113.20 levels.

The euro has opened the new trading week with a strong bid tone against the US dollar, with price testing key breakout resistance. A sustained break above the well-defined triangle pattern should support further upside in the EURUSD pair towards the 1.1470 level. Only a move below the 1.1400 support level can negate the bullish intraday sentiment surrounding the EURUSD.

The EURUSD pair is strongly bullish while trading above the 1.1430 level, key technical resistance is found at the 1.1470 and 1.1500 levels.

If the EURUSD pair moves below the 1.1400 level, buyers may test the 1.1377 and 1.1350 support levels.

The yen gained against the USD in early trading hours despite negative economic data from Japan. Data from the government showed that the economy contracted by minus 2.5%, which was lower than the consensus estimate of minus 1.9% and the slowest growth in more than four years. On a QoQ basis, the economy contracted by minus 0.6%. Bank lending in November increased by 2.1%, which was lower than the estimated 2.2%.

Asian markets declined sharply today as traders renewed their worries about trade. Over the weekend, China threatened the US with ‘severe consequences’ over the arrest of Huawei’s CFO. She was arrested last weekend in Canada and was accused of working against US sanctions in Iran. European and American futures pointed to a lower open.

Sterling was relatively unmoved ahead of a key vote on Brexit scheduled tomorrow. Parliament is widely expected to vote against the bill proposed by Theresa May. This could have major results for the United Kingdom. Over the weekend, Labor leader Jeremy Corbyn asked Theresa May to resign if she loses the vote in parliament. Other analysts have raised the chances that May could resign or ask for another referendum on Brexit. Later today, traders will receive key data from the UK including the GDP numbers, industrial production, manufacturing data, and trade data.

EUR/USD

The EUR/USD pair extended the gains started on Friday after disappointing NFP numbers. It reached an intraday high of 1.1442, which was higher than last week’s low of 1.1267. On the hourly chart, the pair’s price is above the 50-day and 25-day EMA. The RSI has moved closer to the overbought level of 70 while the momentum indicator is above the 100 level. This week, the pair will likely continue moving higher as traders wait for direction of monetary policy from the Fed.

USD/JPY

The USD/JPY pair declined today to an intraday low of 112.22. This was an important support and on the hourly chart appears to be a double bottom position. The current price is below all the major moving averages while the RSI is at 35. The price is also slightly above the lower line of the Bollinger Bands. The declines could continue if the pair crosses the important support level of 112.22.

GBP/USD

The GBP/USD pair was little moved in the Asian session as traders wait for tomorrow’s vote and important data today. It is now trading at 1.2742. On the four-hour chart, the pair’s price is below the 50-day and 25-day EMA. The MACD is along the neutral level while the RSI is at 50. The pair will likely continue moving in this sideways direction before starting a new trend tomorrow.

World markets are starting a new week with a decline. Futures on American S&P500 sank to levels where they have not steadily been since May. Shanghai's Stock Exchange Blue chip index A50 slid to the lows of June-November. Japanese Nikkei225 sank to its local minimums.

Market reaction to weak statistics has added to anxiety around the trade wars between China and the United States. Poor macroeconomic data published by the three world's largest economies exacerbated fears around the pace of global growth.

U.S. labor market were significantly worse than expected (growth by 155K new jobs against the expected 200K), causing both weakening of the dollar and the fall of the U.S. stock indices. Dollar decline very often helps markets. But this time, investors preferred to temporarily stay away from American assets.

The U.S. labor market's sudden weakness pulled the dollar out of the growth trend that last since the end of September and is trading now at the level of 96.40 on the dollar index DXY, retreating below 1.1430 for the euro in a pair of EURUSD. The final scrapping of the dollar growth trend will confirm the capture of the previous local extremes on 96.0 and 1.1450, respectively.

In our view, the dollar's retreat is unlikely to be sustainable. The weakening of the United States is rapidly being moved to other markets and economies. Against the backdrop of weaker indicators and missed expectations in other countries, the dollar may soon receive support as a safe-haven currency.

Thus, the dollar is more likely to wait for another period of consolidation in the range, rather than experienced a full downward reversal. Similar periods of consolidation earlier this year were observed from January to April and from May to September, while markets waited for further signals from economic indicators and central banks reactions to them.

However, this time there are more signs of fading growth in key regions.

On Sunday it became known that consumer inflation in China slowed from 2.5% to 2.2% yoy and for Producer prices Index from 3.3% to 2.7% yoy. Both indicators came out worse than expected, despite yuan lost about 10% since the middle of the year. All of it indicates a sharp slowdown in the economy, where domestic demand cannot overcome the problems caused by trade conflicts.

The final data on Japan's GDP on Monday morning noted a contraction of the economy by 0.6% in 3Q, the strongest in four years. In addition, in November, we observed a slowdown in the level of lending, which is another sign of problems with economic growth.

Eurozone Sentix Investor Confidence dropped sharply to -0.3 in December, down from 8.8 and missed expectation of 8.4. It's also the fourth decline in a row, and lowest reading since December 2014. Expectation index also dropped to -18.8, lowest since August 2012. Sentix noted that "the dynamics of the downturn are similar to those of the pre-crisis year 2007."

Also, "sheer downward momentum that the economy is currently offering is impressive. The economy is "slimming down at a considerable pace, with pressures coming from "all corners" including "trade disputes, the Italian crisis, unrest in France and Belgium or Brexit." Besides, "the momentum of the current downturn is in many respects similar to that of 2007, and banks, especially in Europe, appear to be in a similarly precarious position".

Full release here.

• Rates: US 10-yr yield nears 2.78% key support
  A new US equity sell-off dragged US yields up to 6 bps lower on Friday with the US 10-yr yield now near the key support level of 2.78%. Today’s eco calendar won’t inspire trading with risk sentiment probably setting the tone again. European investors take into account Thursday’s ECB meeting, searching for clues on new TLTRO’s and changes to the reinvestment policy.
• Currencies: Dollar struggles as US yields decline further
  The dollar is losing the most ground. The US currency fails to fulfill its safe haven role as US yields are tumbling lower. Markets ponder US growth prospects as the trade-rift with China intensifies again. EUR/USD is drifting further north in the 1.12/1.1621 trading range. Sterling suffers going into tomorrow’s key Brexit vote.

The Sunrise Headlines

• US stock markets closed deep in the red on Friday as losses stranded between -2% and 3% on investor concerns that growth has peaked and the ongoing US/China trade spat. Asian bourses lose up to 2% this morning.
• China has summoned the US ambassador in Beijing to demand the release of Ms Meng’, CFO of China’s Huawei, in a sign US-Chinese relations are heating up. China also threatened Canada with “serious consequences” for arresting her.
• Germany’s CDU has elected Merkel’s protégé, Annegret Kramp-Karrenbauer, to succeed her as party leader. Germany has also dropped its long-held EU migrant quota demand in a bid to fix the EU’s asylum system.
• Maurice Obstfeld, the IMF’s departing chief economist, warned the global growth slowdown will likely have a drag on the US economy as well. His assessment is a downgrade of the “steady global growth” forecast from Oct.
• Belgium’s N-VA party has left the government, as it cannot agree with its coalition partners to support the UN migration pact. PM Michel will now form a minority government until the new national elections in May next year.
• The Japanese economy shrank 0.6% Q/Q in Q3, the most in over four years, with business spending decreasing the hardest. China’s consumer inflation disappointed with 2.2% inflation in November (2.4% expected).
• Today’s economic calendar is rather thin, with only second-tier data. The US releases the Job Openings for October. In the EU, the German trade balance and Italy’s industrial production for October will be published.

Currencies: Dollar Struggles As US Yields Decline Further

USD struggles as US yields nosedive

Global markets initially entered calmer waters on Friday. Oil prices bottomed as OPEC+ agreed to cut production. The US payrolls were a little softer than expected but still painted a healthy labour market. Both factors helped to ease global market tensions, at least temporary. The USD held relatively tight ranges against the euro and the yen. However, risk-off sentiment returned later. The political bickering between the US and China on the arrest of the Huawei CFO intensified. US yields nosedived again. Of late, this was no guarantee for a USD decline. However, this time, the US currency struggled despite the global risk-off context. EUR/USD finished at 1.1379. USD/JPY closed at 112.69. The risk-off trade continues in Asia this morning. Political tensions between the US and China, soft Chinese data this weekend (trade & prices) and a downward revision of the Japan Q3 GDP are weighing on sentiment. Moves in the major FX cross rates stay modest and orderly, but the dollar remains in the defensive. The trade-weighted dollar dropped below 96.50. EUR/USD extends gains north of the 1.14 level. USD/JPY trades in the112.40 area. Later today, the eco calendar is thin with only second tier data in the US (JOLTS job openings) and in Europe. The Fed entered its blackout period. Even so, interest rate markets are ever more embracing the scenario that there will hardly be any additional Fed hikes after next week’s meeting. We don’t see this scenario confirmed by the US data. Even so, markets have growing doubts on US growth. For now, there are tentative signs that this is also weighing on the US dollar. It is difficult to give the euro some kind of a safe haven status. However, short-term, it looks that a riskoff sentiment combined with a further decline in US yields might be a (moderate) negative for the dollar. Of late we advocated more range trading in the 1.12-1.15/1.1621 trading range. ST, EUR/USD might drift a bit further north in this range.

Sterling remained in the defensive on Friday and this morning as the key Brexit vote scheduled for tomorrow is coming closer. During the weekend, there was still pressure on UK PM May to delay the vote and try to get a better deal from Europe. However, for now, it looks that a vote with no approval remains the most likely scenario. This continues to weigh on sterling. EUR/GBP clearing the 0.8939 resistance illustrates the fragile sentiment on sterling

USD (trade-weighted –DXY) dollar struggles as US yields discount ever less Fed tightening beyond 2018

Risk-off has been in full swing at the end of last week while 10 year US notes were moving higher, so lower yields also caused some sharp drop on XXX/JPY pairs as USDJPY moved close to 112.00. Currently, we see USDJPY reversing higher likely headed into wave c) of a corrective rise which may find new sellers around 113.00 area.

USDJPY, 1h

The USD/CAD has reached the POC zone that stands around 4/8 MM and we might see a bounce soon. Pinbar points to now moment buyers.

When now moment buyers are aligned with historical buyers that stacks more odds into our favour when we make a trade. At this point, 1.3295-3305 should provide the bounce based on historical vs now moment buyers, order block and 4/8 MM confluence. The pair has formed a dragon-like pattern so watch for a bounce. Targets are 1.3366 and 1.3397. Above 1.3400 the doors is open towards 1.3427.