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The Euro holds in red in early Monday's trading and pulled back from three-day recovery high at 1.1445.

Falling 10SMA caps recovery for now, keeping intact pivotal barrier at 1.1470 (Fibo 38.2% of 1.1745/1.1300) as bounce from last Wednesday's low at 1.1300 (09 Nov 2016 high) shows signs of stall, with bearish daily techs supporting scenario.

The pair is riding on the fourth corrective wave of five-wave cycle from 1.1745 (31 July high), which should ideally end here, before broader bears continue. Dip and close below 5SMA (1.1385) is needed to confirm and re-focus 1.1300 support, loss of which would open way towards 1.1186 (Fibo 61.8% of 1.0340/1.2555 rally).

Alternatively, break above 1.1470 Fibo resistance would signal extended recovery and expose very strong barrier at 1.1540 (base of weekly cloud, reinforced by Tenkan-sen line).

Res: 1.1445, 1.1470, 1.1509, 1.1540
Sup: 1.1410, 1.1385, 1.1366, 1.1335

Following a reversal from the upper boundary of a junior descending channel on June 22, the Aussie has been trading in a two-month descending channel against the Canadian Dollar.

During this period of decline, the exchange rate has reached a two-year low level at 0.9421. However, the pair has pulled back from the two years low and is gradually gaining strength.

Technical indicators flash strong sell signals on both the daily and the weekly time frames. This bearish signal could suggest that the 55-hour simple moving average could pressure the Australian Dollar further south during the following trading sessions.

The bearish momentum that started early June has guided the AUD/CHF currency pair lower towards June 2017 low level at 0.7171. This mark 5.25% decreased in price during the past two months.

However, the exchange rate has reversed from the fourteen months low level and is gradually moving north. As a result, the pair has breached a strong resistance level formed by the 55-hour simple moving average and the monthly pivot point at the 0.7277 mark.

Everything being equal, it is likely that the currency exchange rate remains moving in the descending channel during the following trading sessions. Meanwhile, technical indicators flash strong sell signals on the daily time-frame.

The common European currency met on Friday and did not manage to pass the resistance of the 200-hour simple moving average against the US Dollar. The event resulted in a decline, which lasted into the morning hours of Monday's trading session.

On Monday morning the currency exchange rate found support in the junior ascending channel pattern's lower trend line, confirming its strength once more.

Meanwhile, the 200-hour SMA was approaching from the upside. Due to that reason the pair is set to be squeezed in between the resistance and the support line. The squeeze is bound to end up in a break out.

The GBP/USD currency exchange rate on Friday broke the resistance of the dominant medium scale pattern. The event resulted in an increase of volatility, as the rate bounced around without a clear direction.

On Monday morning the volatility was gone. The rate was trading almost flat in a limbo around the new weekly PP at 1.2748 level. The pivot point was holding the currency exchange rate down, as it attempted to surge.

The rate might surge higher as soon as additional support arrives. Namely, the 55 and 100– hour simple moving averages were approaching from the downside.

The US Dollar has surged against the Japanese Yen in the second half of Friday's trading and on Monday morning.

However, the rate has encountered a resistance cluster near the 110.70 mark. Namely, the weekly PP and the 55-hour simple moving average were providing resistance at that level.

Meanwhile, the pair had no support as low as 110.37, where a monthly pivot point level was located at.

It can be expected that the rate will decline either due to the mentioned resistance or due to additional SMAs approaching from the upside.

The yellow metal's price on Monday morning continued the surge, which began on late Friday. On Friday, the pair managed to break the resistance of the 55-hour SMA and a monthly pivot point.

On Monday morning the most relevant aspect of the commodity price's chart was the fact that the price had reached above all notable close by resistance levels. Namely, it faced no resistance levels as high as the 1,196.70 level.

At that level the 200-hour simple moving average was the only resistance level, which could stop the price from reaching back above the 1,200.00 mark.

CNY weakening has stalled a bit since China pushed up offshore money market rates. It sends a signal that China would like to slow the CNY depreciation on the back of recent signs of rising capital outflows and possibly to not add fuel to the fire in coming trade negotiations with the US. We expect the CNY to move sideways before resuming a gradual weakening against the USD on diverging monetary policy.

Chinese stocks are still under pressure but the declining trend in offshore stocks has faded recently. Bond yields increased last week on stories of rising supply as the Ministry of Finance urged local governments on Tuesday to accelerate bond issuance to support the economy.

Commodity prices keep declining. Metal prices especially have taken a big hit.

European Commissioner for Economic and Financial Affairs Pierre Moscovici talked about Brexit in a French radio interview today.

Asked if there would definitely be a deal between the UK and the EU on Brexit, Moscovici said it's "not necessarily".

He also added that "in theory" the Brexit vote can be reversed. He noted "it is up to the British themselves who have made the decision to leave, to decide ultimately if they will or not, and how they will do it."

But he also said that "the probability of Brexit is nevertheless very strong because there has been a vote of the people, a referendum..."

Pivot (invalidation): 65.50

Our preference Long positions above 65.50 with targets at 66.10 & 66.40 in extension.

Alternative scenario Below 65.50 look for further downside with 64.80 & 64.45 as targets.

Comment A support base at 65.50 has formed and has allowed for a temporary stabilisation.