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For the 24 hours to 23:00 GMT, the EUR declined 0.53% against the USD and closed at 1.2169, after the German government trimmed Germany's 2018 growth outlook.

The Euro-zone's largest economy is expected to grow 2.3% in 2018, down from an earlier estimate of 2.4%, as global trade was unlikely to make a considerable contribution to growth.

On the macro front, French consumer confidence index recorded an unexpected rise to a level of 101.0 in April, while market participants had expected the index to remain steady at a level of 100.0.

The US Dollar advanced against its key counterparts, boosted by easing trade tensions between US and China, following news that the US would likely reach a trade agreement with China.

In economic news, data indicated that the MBA mortgage applications fell 0.2% in the week ended 20 April. In the previous week, mortgage applications had advanced 4.9%.

In the Asian session, at GMT0300, the pair is trading at 1.2172, with the EUR trading slightly higher against the USD from yesterday's close.

The pair is expected to find support at 1.2144, and a fall through could take it to the next support level of 1.2117. The pair is expected to find its first resistance at 1.2215, and a rise through could take it to the next resistance level of 1.2259.

Trading trend in the Euro today is expected to be determined by the release of the European Central Bank's (ECB) monetary policy decision, due later in the day. Additionally, the release of German GfK consumer confidence for May, will be eyed by investors. Later in the day, the US initial jobless claims followed by advance goods trade balance and flash durable goods orders data, both for March, will keep investors on their toes.

The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average

For the 24 hours to 23:00 GMT, the GBP declined 0.33% against the USD and closed at 1.3934.

In the Asian session, at GMT0300, the pair is trading at 1.3940, with the GBP trading a tad higher against the USD from yesterday’s close.

The pair is expected to find support at 1.3914, and a fall through could take it to the next support level of 1.3888. The pair is expected to find its first resistance at 1.3976, and a rise through could take it to the next resistance level of 1.4012.

Moving ahead, investors would closely monitor UK’s BBA mortgage approvals data for March, set to release in a few hours.

The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.

For the 24 hours to 23:00 GMT, the USD rose 0.53% against the JPY and closed at 109.42.

In the Asian session, at GMT0300, the pair is trading at 109.37, with the USD trading 0.05% lower against the JPY from yesterday’s close.

The pair is expected to find support at 108.96, and a fall through could take it to the next support level of 108.56. The pair is expected to find its first resistance at 109.62, and a rise through could take it to the next resistance level of 109.88.

Going forward, traders would closely monitor the Bank of Japan’s (BoJ) interest rate decision, due to be announced in the early hours of tomorrow.

The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.

For the 24 hours to 23:00 GMT, the USD rose 0.41% against the CHF and closed at 0.9830.

Macroeconomic data indicated that Switzerland’s ZEW economic expectations index eased to a level of 7.2 in April, compared to a level of 16.7 in the previous month.

In the Asian session, at GMT0300, the pair is trading at 0.9830, with the USD trading flat against the CHF from yesterday’s close.

The pair is expected to find support at 0.9805, and a fall through could take it to the next support level of 0.9779. The pair is expected to find its first resistance at 0.9852, and a rise through could take it to the next resistance level of 0.9873.

The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.

For the 24 hours to 23:00 GMT, the USD rose 0.1% against the CAD and closed at 1.2839.

In the Asian session, at GMT0300, the pair is trading at 1.2843, with the USD trading a tad higher against the CAD from yesterday’s close.

The pair is expected to find support at 1.2816, and a fall through could take it to the next support level of 1.2789. The pair is expected to find its first resistance at 1.2884, and a rise through could take it to the next resistance level of 1.2925.

In absence of key macroeconomic releases in Canada today, investor sentiment would be governed by global macroeconomic news.

The currency pair is trading below its 20 Hr moving average and showing convergence with its 50 Hr moving average.

For the 24 hours to 23:00 GMT, Gold declined 0.76% against the USD and closed at USD1322.60 per ounce, as a broad strength in the greenback, reduced the allure of the precious yellow metal.

In the Asian session, at GMT0300, the pair is trading at 1324.80, with gold trading 0.17% higher against the USD from yesterday’s close.

The pair is expected to find support at 1319.63, and a fall through could take it to the next support level of 1314.47. The pair is expected to find its first resistance at 1330.53, and a rise through could take it to the next resistance level of 1336.27.

The yellow metal is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.

For the 24 hours to 23:00 GMT, Silver declined 0.89% against the USD and closed at USD16.62 per ounce, tracking losses in gold prices.

In the Asian session, at GMT0300, the pair is trading at 16.62, with silver trading flat against the USD from yesterday’s close.

The pair is expected to find support at 16.52, and a fall through could take it to the next support level of 16.42. The pair is expected to find its first resistance at 16.75, and a rise through could take it to the next resistance level of 16.87.

The white metal is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.

For the 24 hours to 23:00 GMT, Crude Oil rose 0.58% against the USD and closed at USD68.15 per barrel, as expectations that the US would likely re-impose sanctions against Iran shrugged off a bearish report on US inventories.

The Energy Information Administration (EIA) reported that US crude oil stockpiles rose by 2.2 million barrels to 429.7 million barrels in the week ended 20 April.

In the Asian session, at GMT0300, the pair is trading at 68.42, with oil trading 0.40% higher against the USD from yesterday’s close.

The pair is expected to find support at 67.54, and a fall through could take it to the next support level of 66.66. The pair is expected to find its first resistance at 68.87, and a rise through could take it to the next resistance level of 69.32.

Crude oil is trading above its 20 Hr and 50 Hr moving averages.

USDX Elliott Wave view in short-term cycle suggests that the decline to 89.22 low on 4.17.2018 ended as a Zigzag correction in Intermediate wave (B). Above from there, the rally is unfolding as 5 waves Impulse Elliottwave structure looking to extend higher 1 more leg in Minor wave 5 at least before ending the 5 waves structure. Above from 89.22 low, Minor wave 1 ended at 89.66, Minor wave 2 ended at 89.45 low, and Minor wave 3 ended at 91.07. The internal of Minor wave 3 also unfolded as an impulsive sequence where Minute wave ((i)) ended at 89.72. Minute wave ((ii)) ended at 89.51, Minute wave ((iii)) ended at 90.47 high, Minute wave ((iv)) ended at 90.21 low, and Minute wave ((v)) of 3 ended at 91.07.

Down from there, Minor wave 4 pullback ended at 90.70 low. The Index then started Minor wave 5 of (C) higher with the completion of Minute wave ((i)) at 91.11 and Minute wave ((ii)) at 90.94. The index has reached the minimum number of swings to call the cycle from 4.17 low ended, but while trading above 90.70 low, index has scope to see some more upside towards 91.61-92.24 area before ending the 5 waves rally from 4.17 low. Afterward, the index should react lower in minimum 3 swings at least. We don’t like buying it.

USDX 1 Hour Elliott Wave Chart

Daily Pivots: (S1) 1.2135; (P) 1.2186 (R1) 1.2213; More....

EUR/USD dropped to as low as 1.2159 so far and focus is now on 1.2154 key support. Decisive break there should confirm the bearish case of medium term reversal. In addition, the break of 100% projection of 1.2475 to 1.2214 from 1.2413 will indicate downside acceleration. In that case, EUR/USD should target 161.8% projection at 1.1991 next. In case of recovery, outlook will remain bearish as long as 1.2244 minor resistance holds. And further decline is still expected. However, break of 1.2244 will indicate strong support from 1.2154 and turn intraday bias back to the upside for 1.2413, to extend recent range trading.

In the bigger picture, key fibonacci level at 38.2% retracement of 1.6039 (2008 high) to 1.0339 (2017 low) at 1.2516 remains intact despite attempts to break. Firm break of 1.2154 support will confirm rejection by this fibonacci level. And in that case, a medium term top is at least formed at 1.2555. EUR/USD should then head back to 38.2% retracement of 1.0339 to 1.2555 at 1.1708 first. We'll look at the structure and momentum of such decline before decision if it's an impulsive or corrective move.