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Daily Pivots: (S1) 0.7423; (P) 0.7448; (R1) 0.7483; More...

Intraday bias in AUD/USD remains neutral for consolidation above 0.7411 temporary low. As long as 0.7559 minor resistance holds, deeper decline is expected. Break of 0.7411 will target cluster support at 0.7328 (61.8% retracement of 0.6826 to 0.8135 at 0.7326). Sustained break will add more credence to the case of long term down trend resumption and target 0.7158 support next. On the upside, break of 0.7559 resistance, however, will indicate short term bottoming, on bullish convergence condition in 4 hour MACD. Lengthier consolidation would then be seen before another fall.

In the bigger picture, medium term rebound from 0.6826 is seen as a corrective move. Decisive break of 0.7500 key support suggests that such correction is completed at 0.8135. Deeper decline would be seen back to retest 0.6826 low. In case of another rise, we'd expect strong resistance from 38.2% retracement of 1.1079 to 0.6826 at 0.8451 to limit upside to bring long term down trend resumption eventually.

Cable remains within choppy directionless mode which extends into sixth straight day on Friday, signaled by multiple long-legged Dojis.

Initial negative signal was generated on eventual close below 200SMA on Wednesday after recovery attempts were capped by falling 10SMA and pound was hurt by softer than expected tone from BoE.

Governor Carney said that he expects rate rise over next year if there are no shocks to the economy.

The pair moved closer to the range floor, turning near-term bias negative, but still unable to break lower and signal continuation of larger downtrend from 1.4376 (post-Brexit recovery high).

Bullishly aligned momentum and slow stochastic conflict MA’s in bearish mode, suggesting further sideways trading.

Cable is on track for weekly close in Doji after strong fall in past three week’s which adds to signals of extended consolidation, also signaling that strong three-week fall might be running out of steam.

However, weekly close below 200SMA would be negative signal which could be reinforced by formation of 10/200SMA death cross (falling 10 SMA is approaching 200SMA) and keep the downside at risk.

Firm break below recent range floor would risk test of 1.3442 (Fibo 38.2% of 1.1930/1.4376 recovery phase) and extension towards 1.3230 (weekly cloud top).

Bullish scenario requires lift and close above 200 and 10SMA’s to ease bearish pressure and signal recovery.

Res: 1.3544, 1.3573, 1.3617, 1.3676
Sup: 1.3500, 1.3484, 1.3460, 1.3442

The Euro eased below 1.19 handle in early European trading on Friday after trading within tight consolidation in Asia.

The dollar started to regain traction after being hit by soft US inflation data on Thursday, bringing the single currency under renewed pressure.

Thursday's strong recovery rally completed reversal pattern on daily chart but gains stalled under pivotal barrier provided by falling 10SMA (currently at 1.1942), keeping the downside vulnerable.

Daily indicators remain in mixed mode as momentum and slow stochastic continue to head north, while MA's are in full bearish mode.

The downside is expected to remain vulnerable while falling 10SMA caps, but the pair may spend some time in consolidation between key points (1.1822 low, reinforced by weekly 55SMA and falling 10SMA at 1.1942) before establishing in fresh direction on break of either side.

Overall picture remains bearish as the pair is on track for the fourth weekly close in red, however, fresh attempts higher could be anticipated on week-end profit-taking.

Firm break above 10SMA would open way for further recovery and expose key barriers at 1.2017 (200SMA) and 1.2043 (Fibo 38.2% of 1.2400/1.1822 descend).

Conversely, loss of 1.1822 handle would risk test of initial target at 1.1790 (Fibo 76.4% of 1.1553/1.2555 upleg) and possible extension towards key med-term support at 1.1709 (Fibo 38.2% of 1.0340/1.2555 ascend).

Res: 1.1925, 1.1942, 1.1959, 1.1995
Sup: 1.1875, 1.1843, 1.1822, 1.1790

Daily Pivots: (S1) 1.2794; (P) 1.2885; (R1) 1.2944; More....

Intraday bias in USD/CAD remains on the downside for deeper decline. As long as 1.2526 support holds, we'd still favor the bullish case that rebound from 1.2061 hasn't completed. Above 1.2859 minor resistance will turn bias back to the upside for 1.2996 first. However, firm break of 1.2526 will resume the fall from 1.3124 to 1.2246 support and likely below.

In the bigger picture, current development suggests that rebound from 1.2061 has not completed yet. Focus is back on 38.2% retracement of 1.4689 to 1.2061 at 1.3065. Sustained trading above there will confirm medium term bullish reversal. That is, down trend from 1.4689 has completed at 1.2061 already. In that case, next target will be 61.8% retracement at 1.3685. However, break of 1.2526 support will dampen this bullish view again. And, focus will be back on 1.2061 key support level, which is close to 50% retracement of 0.9406 (2011 low) to 1.4689 (2015 high) at 1.2048

XAUUSD (1319.66): Gold prices managed to breakout from the consolidation phase after multiple retests near the support level of 1311 - 1307 region. The upside momentum could see gold prices rising to test the next main resistance level at 1325 level. In the near term, gold prices could maintain the range within the current levels with further breakout likely to determine the next leg in the direction in prices.

GBPUSD (1.3529): The GBPUSD slipped below the 1.3530 level of support briefly but price action managed to close back at this level. The consolidation seen at this level continues and we expect to see a potential breakout in the near term. To the upside, GBPUSD could be seen targeting the main resistance level of 1.3902 while to the downside, a breakdown off the current level could push the GBPUSD lower to 1.3500 round number support.

Daily Pivots: (S1) 108.85; (P) 109.10; (R1) 109.38; More...

USD/JPY is staying in consolidation below 110.02 short term top. Intraday bias remains neutral. Deeper pull back cannot be ruled out. But downside should be contained by 38.2% retracement of 104.62 to 110.02 at 107.95 to bring rally resumption. On the upside, break of 110.02 will resume the rise from 104.62 to 61.8% retracement of 114.73 to 104.62 at 110.86 next.

In the bigger picture, corrective decline from 118.65 (2016 high) has completed with three waves down to 104.62. Rise from 104.62 is possibly resuming the up trend from 98.97 (2016 low). This will be the preferred case as long as 55 day EMA (now at 107.95) holds. Decisive break of 114.73 resistance will confirm our view and target 118.65 and above. However, sustained break of 55 day EMA will dampen this bullish view and turn focus back to 104.62 low instead.

EURUSD (1.1916): The EURUSD was seen closing with strong gains yesterday as price action rallied back to the breached support level of 1.1920. However, the 4-hour Stochastics is showing a hidden bearish divergence which could signal that price action could soon resume the declines again. If the EURUSD posts a higher low, we could expect to see a bottom being formed. Price action will need to clear the support turned resistance level of 1.1960 - 1.1920 in order to post a correction. The long term upside resistance can be seen at 1.2200 in this case. To the downside, failure to clear the resistance could keep the EURUSD maintaining the range within the resistance level and the lower support at 1.1730.

The British pound felt the heat yesterday as the BoE left interest rates unchanged. However, the losses were limited with the currency pair seen consolidating near the same level. Data from the U.S. showed that consumer prices rose less than expected. Headline CPI increased 0.2% while core CPI rose 0.1% on the month.

The U.S. dollar was seen weakening slightly on the day.

Looking ahead the economic data for the day will see the release of the employment numbers from Canada. The median estimates point to an increase of 17.8k jobs on the month which is slightly lower than the 32.3k jobs added previously. The Canadian unemployment rate is expected to remain steady at 5.8%.

The ECB president, Mario Draghi is expected to speak later in the afternoon. The ECB president will be speaking at a conference in Italy. The week wraps up with the University of Michigan's consumer sentiment and inflation expectations data

• Gold price mostly consolidating towards the lower lows
• Sterling bulls got their hopes crushed yesterday
• The governor of the Bank of England failed to hide his embarrassment yesterday

There is simply nothing exciting about the gold price. Mostly, it is the dollar story which is moving the market as investors are highly immune to geopolitical fears and being completely oblivious of it. Israel ranched up the tension over in the Middle East yesterday by attacking Syria, and the EU has stepped in to calm the situation. Despite that, there is still a significant shift in the Isralian military position over the borders and investors are not factoring this element in their portfolio.

This could be destructive. On the other hand, oil price is tracking the situation very closely and the only reason that we are seeing the prices inflated this much is not due to the supply concern, because OPEC could unleash the needed supply in no time. The reason that the prices are inflated is mainly because of the heightened tensions over in the Middle East and the situation could further flare up meaningfully.

In terms of gold price action, we are mostly consolidating towards the lower lows and this gives me an indication that it is highly likely that the next bigger move could be to the downside and if the support of $1300 breaks, we could easily see another $30 move after that. As for the oil price (Brent), I think the next major resistance level which everyone is looking at is the $80 mark

Investors over in Europe would be listening to Draghi's speech and gauging his stance towards the monetary policy. The ECB president fuelled the European equity rally since their last meeting by adopting somewhat dovish stance again. That took the tole on the euro and the European indices reacted positively. European equity markets are set to finish another strong week and this would be the seventh consecutive week where the returns are positive

The momentum looks stronger than the US markets, especially for the FTSE 100 Index. As we said earlier, a lot of this to do with the weaker currencies: Euro and Sterling. Both currencies have been under pressure as the expectations around the hawkish monetary stance for both central banks has subsided. Yes, the strength in the dollar index has a lot to of do here and it has also taken out an enormous amount of wind from the Euro and Sterling against the dollar.

Sterling bulls got their hopes crushed yesterday as the Bank of England gave no notion as to when they will increase the interest rate again. The bad news didn’t stop here, the bank also downgraded its growth and inflation forecast- the final blow by the bank. The governor of the Bank of England failed to hide his embarrassment yesterday that the bank was ahead of itself and it has tasted the reality now. The sluggish growth during the Q1 would likely to have spill-over effects in the Q2, but the governor did show some optimism for the bulls by confirming that another rate hike for this year is still on the table.