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GBPUSD (1.2999): The GBPUSD currency pair posted a sharp correction on the day as price action reversed losses just a few pips off the 1.2683 level of support. This reversal saw the currency pair breaking past the resistance level of 1.2808. Further gains could keep the GBPUSD biased to the upside as it approaches the resistance level of 1.3086. A retest of this level to establish resistance would mark a correction and potentially keep the GBPUSD trading flat in the near term.

EURUSD (1.1411): The EURUSD currency pair turned bullish on the day as price action posted a strong reversal. The common currency rallied promptly after price action fell to the lower support area of 1.1315 - 1.1300 region. The rebound, however, keeps price action contained below the major resistance level of 1.1435. As long as price action is below this resistance, we expect to see a sideways range being maintained. On the 4-hour chart, the EURUSD is seen posting a hidden bearish divergence which could push the price action lower if the resistance level is not breached.

Daily Pivots: (S1) 144.76; (P) 145.75; (R1) 147.48; More...

Intraday bias in GBP/JPY remains on the upside. Current development suggests that pull back from 149.70 has completed. Further rise should be seen to retest 149.70 first. Break will resume the rise from 139.88 and target 153.84/156.59 resistance zone. On the downside, below below 145.43 minor support will turn bias back to the downside for 142.76 again.

In the bigger picture, as long as 139.29 cluster support (50% retracement of 122.36 to 156.59 at 139.47) holds, up trend from 122.36 (2016 low) would still extend beyond 156.69 high. However, decisive break of 139.29/47 will suggest that such up trend is completed and turn outlook bearish. In that case, next target is 61.8% retracement at 135.43.

The U.S. Dollar posted strong declines on the first trading day of November. The declines pushed most of its peers, such as the Euro and the British pound including precious metals higher on the day.

Economic data saw the release of the UK's manufacturing PMI which was seen at 51.1. This was below estimates of 53.0 and down from September's reading of 53.6.

The Bank of England held its monetary policy meeting yesterday, and as widely expected, the central bank left interest rates unchanged. The BoE signaled that it was willing to wait for the Brexit negotiations to conclude.

The ISM manufacturing PMI fell unexpectedly to 57.7 missing forecasts of a decline to 59.0. However, data showed that new orders, production, and employment components were rising at a healthy pace.

Construction spending, on the other hand, remained unchanged during September. Data showed that construction spending was at an annualized rate of $1.329 trillion. Private construction rose 0.3% during the month.

The economic data for the day started with Australia's retail sales figures. Data showed that retail sales rose at a slower pace of 0.2%. This was followed by the quarterly producer prices index which surged 0.8% beating estimates.

The European trading session will see the release of the monthly final manufacturing PMI. The Eurozone's final manufacturing PMI is expected to remain steady at 52.1. In the UK, the construction PMI is expected to ease to 52.0.

The NY trading session will see the release of Canada's unemployment figures. Canadian unemployment rate is expected to hold steady at 5.9% as it hovers near a 40-year low. Meanwhile, the average jobs added during the month of October is expected to show 12.7k jobs.

In the U.S. the monthly payrolls figures are forecast to show that the U.S. economy added 193k jobs marking a modest increase from 134k jobs added the month before. The average hourly earnings are expected to rise at a slower pace of 0.2% on the month while the U.S. unemployment rate is expected to hold steady at 3.7%.

Daily Pivots: (S1) 127.87; (P) 128.32; (R1) 129.03; More....

Intraday bias in EUR/JPY remains on the upside for the moment. Rebound from 126.63 should target 130.20 resistance first. Break will pave the way for 133.12 high. On the downside, below 128.36 minor support will turn bias to the downside. Break of 126.63 will extend the fall from 133.12 to retest 124.89 low.

In the bigger picture, as long as 124.08 key resistance turn supported holds, larger up trend from 109.03 (2016 low) is still in progress. Firm break of 137.49 structural resistance will target 141.04/149.76 resistance zone next. However, decisive break of 124.08 will argue that such rise from 109.03 has completed and turn outlook bearish. In that case, deeper fall would be seen to 61.8% retracement of 109.03 to 137.49 at 119.90.

Daily Pivots: (S1) 0.8734; (P) 0.8801; (R1) 0.8844; More...

Intraday bias in EUR/GBP remains on the downside for 0.8722 support first. Break there will resume whole decline from 0.9097 and target 0.8620 support next. On the upside, above 0.8864 minor resistance will turn intraday bias neutral first. But another fall is in favor as long as 0.8804 minor resistance holds.

In the bigger picture, EUR/GBP is seen as staying in long term range pattern started at 0.9304 (2016 high). On the downside, break of 0.8722 will extend the falling leg through 0.8620 support. On the upside, break of 0.9097 will target 0.9304 resistance instead.

Daily Pivots: (S1) 1.5770; (P) 1.5884; (R1) 1.5945; More....

EUR/AUD drops further to as low as 1.5742 so far today and intraday bias remains on the downside for 1.5601 support. Break there will pave the way to 1.5271/5313 cluster support zone next. On the upside, above 1.5890 minor resistance will turn intraday bias neutral and bring consolidations first, before staging another decline.

In the bigger picture, current development argues that up trend from 1.3624 (2017 low) is possibly completed at 1.6357, ahead of 1.6587 (2015 high). Deeper decline is now in favor to 1.5271 cluster support (38.2% retracement of 1.3624 to 1.6357 at 1.5313). Break will target 61.8% retracement at 1.4668. On the upside, break of 1.6357 is needed to confirm up trend resumption. Otherwise, risk will now stay on the downside even in case of strong rebound.

Daily Pivots: (S1) 1.1407; (P) 1.1428; (R1) 1.1454; More...

EUR/CHF's rebound from 1.1343 extends higher and break of 1.1429 turns focus back to 1.1501 resistance. Break there will revive the case of reversal. Further rally would be seen to 1.1713 resistance. On the downside, break of 1.1343 will turn bias back to the downside for 1.1154/98 key support zone.

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. This cluster level is in proximity to long term channel support (now at 1.1243) too. 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.

The US dollar is coming under increasing downside pressure against the Japanese yen after the US dollar index suffered a steep reversal on Thursday. Bearish momentum is starting to build, with technical sellers testing the 113.00 support level. The recent reversal from the 113.40 level has the potential to create a bearish head and shoulders pattern on the lower time frames.

The USDJPY pair is bearish while trading below the 112.87 level, key support is now found at the 112.20 and 111.10 levels.

If the USDJPY pair trades above the 112.87 level, buyers are likely to test the 113.40 and 114.20 resistance levels.

The British pound is strongly bullish against the US dollar, after performing its second largest one-day gain of the year on Thursday. The GBPUSD pairs directional is focused on the upside while price trades above the 1.2920 level, which is former key resistance now turned key support. A sustained move above the 1.3000 level should encourage buying towards the 1.3090 level, although GBPUSD bulls may become more cautious ahead of today’s job report from the US economy.

The GBPUSD pair is strongly bullish while trading above the 1.2920 level, key resistance is now found at the 1.3050 and 1.3090 levels.

If the GBPUSD pair moves below the 1.2920 level, sellers may test towards the 1.2880 and 1.2852 support levels.