Sample Category Title

GBPUSD (1.4081): The British pound was seen giving up gains following the breakdown of prices below the 1.4162 level. The decline off the resistance level near 1.4162 has made price action post a consolidation into a bearish flag pattern. A close below 1.4115 could signal further declines to 1.4044 at the very least. The round number support at 1.4000 is likely to be tested in the near term however and we expect to see price posting a rebound in the short term.

EURUSD (1.2326): The euro currency was seen giving up the gains for the second day as price fell to session lows of 1.2334 marking a three-day low. On the 4-hour chart, price action was seen slipping below 1.2363 which marked the breakout from the triangle pattern. Further declines could potentially invalidate the upside bias in price. In the near term, we expect a retest of 1.2363 level following which, if the resistance level holds, the euro could be seen posting stronger declines. Support is seen at 1.2180 which could be tested to the downside if the resistance level at 1.2363 holds up.

The U.S. dollar was seen holding on to the gains from Tuesday. The positive sentiment kicked in after the final revised GDP showed a 3.1% increase on the fourth quarter. This was higher than the expectations of an increase of 2.7%. Later in the day, the pending home sales data showed a 3.1% increase on the month which once again beat estimates of 2.1%. Previous month's data was revised to show a 5.0% decline on the month.

Looking ahead, the economic calendar for the day will see the release of UK's current account data followed by the GDP figures for the fourth quarter of 2017. Economists are forecasting that the UK's GDP expanded at a pace of 0.4% on the quarter, unchanged from the previous estimates.

Canada will also be releasing its monthly GDP numbers with expectations pointing to a 0.1% increase on a month over month basis. Data from the U.S. will see the release of the core PCE price index data. Forecasts point to a slower pace of increase at just 0.2% on the month. Personal spending and income data is expected to show a 0.2% increase and 0.4% increase respectively.

Cryptocurrencies had their best year in 2017 with most of them climbing by more than 1000%. This year, the industry has faced with challenge-after-challenge causing many digital currencies to suffer double digit losses. Ripple, Bitcoin, Ethereum, and Litecoin have fallen by 72%, 42%, 43%, and 44% respectively.

The challenges so far have included crypto ad-bans and other restrictions from the likes of Google, Twitter, Facebook, Snapchat and Instagram. Other companies such as PayPal, Visa, and Mastercard have also made it difficult for people to buy and sell the cryptocurrencies.

United States' regulatory agencies like the Securities and Exchange Commission (SEC) and Commodities and Futures Trading Commission (CFTC) are currently drawing regulations on everything to do with cryptocurrencies.

In Europe, the European Securities and Markets Authority (ESMA) has just published new regulations, which will affect all firms providing online financial services. The new rules will limit several things including marketing, margin requirements, and negative balance protection. At the same time, Japan and South Korea are also working on regulations to protect their citizens.

Meanwhile, ethereum continued to slide after a major developer resigned. Ethereum code editor, Yoichi Hirai resigned after realizing that the Ethereum Improvement Proposal (EIP) that he was in charge of violated Japanese law. Ethereum is currently trading at $415. As shown, the ETH/USD pair's RSI is currently below 30 and the MACD shows signs of a recovery. In the short-term, this could be an indication that the pair could see some short-term gains.

The U.S dollar has staged an impressive rally against the Japanese yen, with the pair hitting 107.00, and moving to its highest trading level since the March 21st. A strong recovery in the value of the U.S dollar index and better than expected U.S macroeconomic data has helped to support overall USDJPY demand. Traders now look towards the release of U.S inflation data, and the U.S dollar index’s next directional move from the pivotal 90.00 level.

The USDJPY pair remains strongly bullish whilst trading above the 106.00 level, further upside towards 107.00 and 107.55 seems possible.

A sustained move below the 106.00 level, will likely lead to further USDJPY selling towards the 105.50 and 105.24 levels.

The euro has moved back below key weekly support against the U.S dollar, after stronger U.S fourth quarter GDP numbers and rising demand for the greenback. Selling pressures are likely to remain on the EURUSD pair, whilst price-action trades below the pivotal 1.2382 technical level. Traders now look towards the release of German CPI data, with the EURUSD now turning negative for the trading week, after earlier staging an impressive upside rally towards the 1.2475 level.

The EURUSD pair is bearish whilst trading below the 1.2382 level, key intraday technical support is now located at the 1.2280 and 1.2205 levels.

Should EURUSD price-action move back above the 1.2382 level, a bullish correction towards the 1.2400 and 1.2430 levels remains possible.

Swiss KOF economic barometer dropped to 106.0 in March, down from 108.4, below expectation of 107.2.

KOF noted in the release that "notwithstanding this decline, the present position is still on a level clearly above its long-term average." This indicates that in the near future the Swiss economy should continue to "grow at rates above average".

Also noted:

• The strongest negative contributions to this result come from manufacturing, followed by the indicators from the exporting industry.
  • Within manufacturing, clear negative outlook came from metal, followed by wood, textile and food processing
• The indicators from the financial sector, from the hospitality industry and those relating to domestic private consumption have remained practically unchanged.

A steady stream of economic data will make its way through the financial markets on Thursday, giving investors the latest glimpse into the health of the global economy.

Action begins at 07:00 GMT with a German report on unemployment for the month of March. The jobless rate in Europe's largest economy is forecast to dip to 5.3% from 5.4% in February.

The United Kingdom is also due to report on gross domestic product (GDP) at 08:30 GMT. The British economy is projected to grow 1.4% annually in the fourth quarter. However, total business investment is forecast to grow just 1.9% compared with 2.1% the previous quarter.

German data will make headlines once again at 12:00 GMT with reports on consumer inflation. Germany's Federal Statistics Office will present the consumer price index (CPI) and harmonized index of consumer prices (HICP). Both figures are expected to show a rise in inflation during March.

Shifting gears to North America, the US Department of Commerce will report on personal incomes and outlays at 12:30 GMT. Personal income from all sources is forecast to rise 0.4%. The personal spending category is forecast to grow 0.2%.

The Labor Department will also report on initial jobless claims at 12:30 GMT, followed by the Chicago purchasing managers' index (PMI) later in the morning. The University of Michigan will also release the final estimate of its consumer sentiment index for March.

North of the border, the Canadian government will release its latest GDP report for the month of January. Canada's economy likely grew 0.1% at the start of the year, based on a median estimate of economists.

USD/CAD

The USD/CAD edged higher on Wednesday, with prices reclaiming the 1.2900 level. The pair had previously bottomed near 1.2825 following an impressive build-up through the first two weeks of March. At the time of writing, USD/CAD was trading at 1.2920, with traders awaiting the latest economic figures.

EUR/USD

Europe's common currency experienced a brisk reversal in mid-week trade, with the EUR/USD plunging almost 150 pips to 1.2324. The pair is currently trading right around those levels. The euro remains under pressure, with the bears eyeing the 1.2300 technical support level. A breakdown below this level would expose the 1.2260 region. On the opposite side of the ledger, strong resistance is forming around 1.2460.

GBP/USD

After being rejected above 1.4200, cable backtracked on Wednesday, hitting a low of 1.4076. GBP/USD continues to trade near those levels as investors set their sights on fresh GDP figures. The pair is barely holding on to the 1.4075 support. A breakdown below this level could send cable back toward the psychological 1.4000. On the flipside, resistance is located at 1.4230.

Daily Pivots: (S1) 1.6008; (P) 1.6100; (R1) 1.6149; More....

A temporary top is in place at 1.6189 in EUR/AUD. Intraday bias is turned neutral for consolidation. But another rise will be expected as long as 1.5857 support holds. Above 1.6189 will resume recent rise from 1.5153 to 100% projection of 1.5153 to 1.5976 from 1.5621 at 1.6444 next. However, break of 1.5857 will be an early sign of trend reversal and turn bias to the downside for 1.5621 support to confirm.

In the bigger picture, current development suggests that rise from 1.3624 is not completed yet. And it's still in progress for 1.6587 key resistance level. We'd be cautious on strong resistance from there to limit upside, on bearish divergence condition in daily MACD. But for now, break of 1.5621 support is needed to be the first sign of medium term reversal. Otherwise, outlook will stays bullish even in case of deep pull back.

Daily Pivots: (S1) 0.8728; (P) 0.8747; (R1) 0.8762; More...

Intraday bias in EUR/GBP remains neutral at this point. As the cross was supported by 0.8686 key support level, we'd slightly favoring the case for further rebound. On the upside, above 0.8796 will target 61.8% retracement of 0.8967 to 0.8666 at 0.8852 and above. Nonetheless, on the downside, firm break of 0.8666 will resume the decline from 0.9305 and pave the way to 0.8303 key support zone next.

In the bigger picture, there are various ways to interpret price actions from 0.9304 high. But after all, firm break of 0.9304/5 is needed to confirm up trend resumption. Otherwise, range trading will continue with risk of deeper fall. And in that case, EUR/GBP could have a retest on 0.8303. But we'd expect strong support from 0.8116 cluster support (50% retracement of 0.6935 to 0.9304 at 0.8120) to contain downside.