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EUR/GBP is trading lower and moves away from resistance at 0.8929 (12/01/2018 high). Hourly support is at 0.8687 (25/01/2018). The technical structure suggests further short-term downside move.

In the long-term, the pair has largely recovered from lows in 2015. The technical structure suggests further upside pressure. The pair is trading above the range of its 200 DMA. Strong resistance can be found at 0.9500 (psychological level).

AUD/USD has weakened further and is now challenging the support at 0.7733. Hourly resistance at 0.7808 (01/09/2018) is now outpaced. The technical structure suggests further short-term weakness.

In the long-term, the trend is turning flattish and fails reaching key resistance at 0.8164 (14/05/2015 low). Key support stands at 0.6009 (31/10/2008 low). A break of the key resistance at 0.8164 (14/05/2015 high) is needed to invalidate our long-term bearish view.

USD/CAD is now trading in the 1.26 range and outreached support at 1.2589 (01/01/2018). New resistance is now at 1.2796 (22/12/2017 high) while further resistance remains at 1.2917 (27/10/2017 high). The technical structure indicates that further short-term rise is expected.

In the longer term, the pair is trading between resistance point at 1.3805 (05/05/2017 high) and support at 1.2128 (18/06/2015 low). Strong resistance is given at 1.4690 (22/01/2016 high). The pair is likely to head lower. The pairs is trading below 200 DMA.

USD/CHF has broken the key resistance at 0.9449 (25/01/2018). Even if the declining trendline remains thus far intact, further strength towards the resistance at 0.9573 (17/02/2018) favoured. Hourly supports now stand at 10.9352 (intraday low).

In the long-term, the pair is still trading in range since 2011 despite some turmoil when the SNB unpegged the CHF. Support at 0.9259 (24/08/2015 low) is attainable. Key support remains at 0.9072 (07/05/2015 low) while resistance at 1.0344 (15/12/2016 high) is distanced. The technical structure favours a long term bullish bias since the unpeg in January 2015.

USD/JPY remain weak. Although the support at 1108.33 is intact thus far, we suspect a limited upside potential in the short-term. Hourly resistances can be found at 109.73 (08/02/2018). The technical structure suggests further shortterm downside moves.

We favor a long-term bearish bias. Support is now given at 107.32 (08/09/2017 low). A gradual rise towards the major resistance at 125.86 (05/06/2015 high) seems unlikely. Expected to decline further support at 101.20 (09/11/2016 low).

GBP/USD has successfully challenged support at 1.3830 and is bouncing higher. Hourly resistance can be found at 1.4067. The technical structure suggests further potential downside move.

The long-term technical pattern is reversing. The Brexit vote had paved the way for further decline but the pair is moving to 2016 highs. A long-term support given at 1.1841 (07/10/2017 low) and a strong resistance at 1.5018 (24/06/2016 high) are identified

EUR/USD is bouncing on support at 1.2223 (23/01/2018 low). Support is located at 1.2190 (15/01/2018 base low). Hourly resistance can be found at 1.2297 (15/01/2018 high). The technical structure suggests further short-term downside moves.

In the longer term, the momentum is turning largely positive. We favor a continued bullish bias. Key resistance is holding at 1.2886 (15/10/2014 high) while strong support lies at 1.1554 (08/11/2017 low).

FX market stands still despite global equity rout

The FX market has been only slightly affected by the sell-off in equities. Moreover, even risk-haven currencies, such as the Japanese yen and the Swiss franc, were of limited interest to investors. Overall, the US dollar enjoyed renewed interest from traders. The dollar index hit 90.57 yesterday, up roughly 1.6% on the week. The index's gains were contained by the appreciation of the Japanese yen.

However, both the Swiss franc and the Japanese yen reversed momentum on Friday with the CHF and JPY down 0.35% and 0.45% against the greenback, respectively. This is somewhat surprising as the US government shut down once again on Friday morning. Investors seem to be not overly fussed about it, which suggests that they remain confident a solution will be find on Friday. Indeed, the lower house is expected to vote early morning.

We see limited risk for further USD weakness as the overall risk-off sentiment is rather dollar supportive for now. However, today will be key as a renewed sell-off in equities ahead of the weekend could trigger a panic reaction. Indeed, investors have always been reluctant to load on risk ahead of weekends. In the FX, this could translate into rising buying pressure in the Japanese yen and Swiss franc. The effect on the greenback is more uncertain.

MXN: recovery to resume

While resurgent volatility suggest that risk asset are still in jeopardy, in general high beta FX have not been materially affected. S&P 500 saw all sectors close down over 300bps as US yields rallied yet FX remained stable. This lack of contagion to us indicates that stock are not going to go much lower as this is a technical correction rather than a structural shift. In the FX EM Mexican Peso is increase becoming attractive. Banxico raised interest rate 25bp while providing a hawkish tone signaling that more hikes are likely. Inflation has come down marginally yet weaker MXN is could change this trend.

It's unlikely given domestic and global environment that inflation will come down meaningfully. We don't see any dovish policy communication until 2019 and could see rates peak at 5.75%. Also, we continue to see a soft NAFTA result. Despite Trumps feet stomping US – Mexico trade economy is deeply integrated. Any action would have complex result and most can be easily circumvented. We would see current USDMXN strength as an opportunity to reload shorts.

The GBP/AUD pair has been confined by an ascending channel since after it touched the lower boundary of the dominant channel at 1.6180 early September, 2017.

After reaching the 50.00% Fibonacci retracement level, the currency exchange rate continues it smooth movement north. This retracement can be measured by connecting the low at 1.6180 and the high at 1.8007.

As for the near future, analysts project that the pair is likely to continue rally until it breaches the upper boundary of the dominant channel. If or when it happens, the movement could find resistance at the monthly pivot point at 1.8101.

The Aussie has been trading in an ascending channel against the Swiss Franc since early December. After hitting its upper boundary on January 22, the currency exchange rate started to depreciate notably during this past weeks.

The AUD/CHF pair has continued to maintain its channel down and could be heading to a speculated target of the monthly pivot point at 0.71.

Technical indicators favour a further decline for the Aussie . In addition, traders should watch out for a likely breakout from the lower boundary of the descending channel.