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EURUSD (1.1691): The EURUSD currency pair pushed higher on Thursday. The gains came on the back of the ECB's monetary policy meeting. price action was seen breaking past the resistance area of 1.1626 - 1.1656 level. Any pullback is likely to be limited to this resistance which could act as support. This would keep the upside bias as the currency pair targets 1.1730 resistance level. In the event that EURUSD slips below failing to establish support, we could expect the ranging price action within 1.1656 - 1.1540 to continue.

The Bank of England and the ECB's monetary policy meetings were held yesterday. Both the central banks left interest rates unchanged as widely expected. The BoE was seen preparing the markets for a no-deal Brexit. The Governor, Mark Carney will be extending his term as the central bank's governor until 2020.

Meanwhile, the ECB's meeting did not offer many clues. The reaction from the euro was also muted although the currency jumped following the ECB's release of the monetary policy decision.

On the economic front, the consumer price index data for August showed that inflation advanced at a pace of 0.2% on the month. This was below estimates of a 0.3% increase. On a year over year basis, U.S inflation rate advanced 2.7% in August. This was slower than the 2.9% increase in July.

Earlier today, data from China showed that industrial production increased 6.1% on the year. Retail sales rose 9.0% beating estimates of an 8.8% increase.

The European trading session will start with the trade balance figures coming out. This is followed by the Bank of England's Mark Carney speaking.

The NY trading session will see the release of the retail sales numbers. Headline retail sales are forecast to rise 0.4%, slightly down from 0.5% increase from the month before. Core retail sales are forecast to rise 0.5%. The data is followed by import prices and industrial production figures.

The EUR/USD made another bullish breakout above the resistance box (dotted orange) and could be ready for a bullish continuation.

The EUR/USD could be building a wave C (purple) pattern that could aim at the Fibonacci retracement levels of wave B vs A. The broken resistance could now act as potential support. A break below the support trend line (blue) however would indicate a larger bearish correction as part of the wave B (purple).

The EUR/USD breakout could be part of an impulsive wave 3 (blue) pattern as long as price stays above the broken resistance (dotted orange box).

Daily Pivots: (S1) 145.54; (P) 146.18; (R1) 147.36; More...

As noted before, the break of 38.2% retracement of 156.59 to 139.88 at 146.26 suggests that whole decline from 156.59 has completed at 139.88, just ahead of 139.29/47 key support zone. Intraday bias remains on the upside for 149.30 resistance for confirmation. On the downside, break of 144.66 minor support will dampen the bullish case and turn bias neutral first.

In the bigger picture, at this point decline from 156.59 is still seen as a corrective move. Focus remains on 139.29 cluster support (50% retracement of 122.36 to 156.59 at 139.47). Strong rebound from there will re-affirm the bullish case that rise from 122.36 is still to extend through 156.59 high. However, sustained break of 139.29/47 should confirm medium term reversal. GBP/JPY would then target a retest on 122.26 (2016 low).

Daily Pivots: (S1) 129.72; (P) 130.34; (R1) 131.47; More....

EUR/JPY;'s break of 130.86 resistance confirmed resumption of rise from 124.89. Intraday bias remains on the upside for 131.97 resistance and then key fibonacci resistance at 132.56. On the downside, break of 129.43 is needed to be the first signal of short term topping. Otherwise, outlook will now remain cautiously bullish even in case of retreat.

In the bigger picture, as long as 124.08 key resistance turned support, larger up trend from 109.03 (2016 low) remains in favor to continue. Decisive break of 61.8% retracement of 137.49 to 124.61 at 132.56 will pave the way to retest 137.49 high. However, firm break of 124.08 will argue that whole rise from 109.03 (2016 low) has completed at 137.49. Deeper decline would be seen to 61.8% retracement of 109.03 to 137.49 at 119.90 next.

Daily Pivots: (S1) 0.8898; (P) 0.8914; (R1) 0.8937; More...

Intraday bias in EUR/GBP remains neutral at this point. Consolidation from 0.8875 temporary low could extend. But upside should be limited well below 0.9051 resistance to bring another decline. As noted before, whole corrective rise from 0.8620 could have finished at 0.9097 already. Below 0.8875 will target 61.8% retracement of 0.8620 to 0.9097 at 0.8802 and below.

In the bigger picture, EUR/GBP is staying in long term range pattern from 0.9304 (2016 high). At this point, there is no clear sign of range break out yet. And more corrective trading would continue. On the upside, in case of another rise, we'd stay cautious on strong resistance from 0.9304/5 to limit upside in case of further rally. Meanwhile, if there is another medium term decline, strong support will likely be seen from 0.8303 to contain downside.

Daily Pivots: (S1) 1.6174; (P) 1.6220; (R1) 1.6302; More....

EUR/AUD recovered after drawing support from 4 hour 55 EMA and intraday bias is turned neutral first. Consolidation from 1.6353 short term top could extend further with another decline, possibly to 38.2% retracement of 1.5601 to 1.6353 at 1.6066. But downside should be contained well above 1.5886 cluster support (61.8% retracement at 1.5888) to bring rise resumption. On the upside, break of 1.6353 will resume larger up trend to 1.6587 key resistance level.

In the bigger picture, up trend from 1.3624 (2017 low) has just resumed. Further rise should be seen to retest 1.6587 (2015 high). Decisive break there will resume the long term rally and target 1.7488 fibonacci level. On the downside, break of 1.5601 support is need to be the first sign of medium term reversal. Otherwise, outlook will remain bullish in case of deep pull back.

Daily Pivots: (S1) 1.1261; (P) 1.1290; (R1) 1.1318; More...

Despite breaching 1.1265 minor support, EUR/CHF quickly recovered. Intraday bias is turned neutral first. ON the upside, break of 1.1342 resistance will revive the case of near term reversal. Bias would be turned back to the upside for 1.1452 resistance for confirmation. In case of another fall, we'd continue to expect strong support from 1.1154/98 key support zone to bring rebound.

In the bigger picture, for now, the 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 1.1196) 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.

Daily Pivots: (S1) 0.7115; (P) 0.7149; (R1) 0.7205; More...

AUD/USD's rebound from 0.7084 short term bottom is still in progress and intraday bias stays mildly on the upside. Further rise could be seen to 55 day EMA (now at 0.7313). But upside should be limited well below 0.7361 resistance to bring down trend resumption. On the downside, break of 0.7084 will resume the fall from 0.8135 for key support level at 0.6826. However, sustained break of 0.7361 will carry larger bullish implication.

In the bigger picture, rebound from 0.6826 (2016 low) is seen as a corrective move that should be completed at 0.8135. Fall from there would extend to have a test on 0.6826. There is prospect of resuming long term down trend from 1.1079 (2011 high). Current downside momentum as seen in daily and weekly MACD support this bearish case. Firm break of 0.6826 will target 0.6008 key support next (2008 low). On the upside, break of 0.7361 resistance, however, argues that a medium term bottom is possibly in place, and stronger rebound could follow. We'll assess the medium term outlook later if this happens.

Daily Pivots: (S1) 1.2972; (P) 1.2999; (R1) 1.3023; More...

No change in USD/CAD's outlook While pull back from 1.3225 might extend lower, downside should be contained well above 1.2886 support to bring rally resumption. We're holding on to the view that corrective fall from 1.3385 has completed at 1.2886 already. On the upside, above 1.3077 minor resistance will turn bias back to the upside for 1.3225 first. Break will resume the rebound from 1.2886 to retest 1.3385 high.

In the bigger picture, strong rebound ahead of 38.2% retracement of 1.2061 to 1.3385 at 1.2879 key fibonacci level retains medium term bullishness. That is, rise from 2017 low at 1.2061 is still in progress. Break of 1.3384 should target 61.8% retracement of 1.4689 (2015 high) to 1.2061 (2017 low) at 1.3685. On the downside, as long as 1.2886 support holds, outlook will now remain bullish.