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Because of release of better than expected information on employment change in the United States, the buck took the lead and in the first hours of this trading session successfully bypassed combined resistance put by the weekly PP and the 200-hour SMA. In larger perspective, the surge should be attributed to junior ascending channel, which guided the pair towards the upper trend-line of a medium scale symmetrical triangle through this week. From trade pattern’s perspective, the pair should make a rebound somewhere near the 113.10 level and resume the downward movement. But since the rate has crossed practically all technical barriers on its way, it has a good chance to break the above pattern and continue to climb towards the weekly R1 at 113.26.

Despite positive developments on the American labour market the bullion continued to advance against buck. The rate has successfully reached resistance zone located between the 1,321 and 1,322 marks. As further road to the north is obstructed by a combination of the weekly R2 and the monthly R1 near the 1,328.4 level the pair is expected to retreat back to the weekly R1 that became additionally secured by the 55-hour SMA. An existence of a minor ascending channel also point out on a plunge in the first half of this trading session. Since the area below the bottom trend-line of the above pattern contains the 100-hour SMA and the 61.8% Fibonacci retracement level, the drop below the 1,311.48 mark seems unlikely. However, it would greatly depend on today’s release of the American macro data.

The Euro versus the US Dollar sustained the position on mostly optimistic US economic data. EUR/USD reached its intraday peak above the 1.2085 level and started to narrow its trading range closer to the 1.2075 area.

The US private companies added 250K positions in December, the strongest monthly gain since March, the ADP Research Institute revealed on Thursday. The figures came in ahead of the official Labour Department’s report, which includes both private and public-sector employment. The jobless rate is expected to remain at 4.1% in the same month. Separately, Markit said that the country’s services sector activity softened at a weaker-than-anticipated pace, with PMI falling from 54.5 to 53.7 points in December, but still in the expansion range.

The Sterling ignored the UK services PMI report, with the GBP/USD currency pair revealing a little initial reaction just after data came in.

Activity in Britain's services sector rose unexpectedly quickly in December, while businesses were more optimistic about the outlook, despite Brexit lingering weigh on investment plans. The Markit/CIPS indicated that the country's services PMI increased to 54.2 in the observed month, the second-strongest rate since April. Along with manufacturing and construction surveys released this week, the economy is expected to reveal up to 0.5% growth in the last quarter of 2017. Meanwhile, consumer spending remained affected by price overheating caused by Brexit vote and weak pay growth.

NZDUSD (0.7158): The New Zealand dollar managed to keep the bullish momentum going as price action was seen testing the target of 0.7160. We expect to see NZDUSD easing from its bullish momentum near this level. Lower support is seen at 0.7062 which could be the immediate downside. The NZDUSD could maintain a sideways range if supported above this level. A break down below could however spell further declines down to 0.6917.

USDJPY (112.88): The USDJPY managed to recover the losses as the currency pair was seen posting strong gains. The yen was seen weakening as USDJPY is likely to extend the gains back to the 113.00 level of resistance. A breakout to the upside based on the bullish momentum could keep the currency pair poised for further upside. However, any weakness could keep the USDJPY range bound within 113.00 and 112.04 level within which the currency pair has been consolidating for the past few weeks.

EURUSD (1.2071): The EURUSD managed to erase the intraday losses as the currency pair settled near the previous highs towards the close. Price action briefly tested the highs near 1.2091 before easing back. On the intraday charts, we see the Stochastics posting a bearish divergence. Failure to break out above 1.2091 could signal short term correction in price. The lower support is found at 1.1900 which could be the downside target on a correction in price.

Data from the UK saw the services PMI edging slightly higher. The services sector activity rose 54.2, beating estimates of 54.1 and ending up slightly higher than November's 53.8 reading.

Private payrolls hiring was seen rising robustly on the back of the holiday season. Data from ADP/Moody's showed that the private sector hiring increased by 250k in December. This was higher than the estimates of 191k. November's ADP payrolls were revised down to 185k.

Looking ahead, the markets will be shifting focus to the nonfarm payrolls report that is due today. Market expectations call for a 190k estimate on the jobs added during the month. The U.S. unemployment rate is expected to remain steady at 4.1% while the average hourly earnings are expected to rise 0.3% on the month. Following the payrolls report, ISM will be releasing the non-manufacturing PMI data which is expected to show a modest increase to 57.6.

The euro has moved to another new-weekly trading high against the U.S dollar, hitting 1.2089, on Thursday, as strong ADP jobs numbers helped risk-on sentiment in global markets. The EURUSD pair fell just short of the 2017 price-high, at 1.2093, creating a bearish double-top pattern on the price-charts. Price-action currently trades around the 1.2070 level, as buying momentum for euros remains strong. Financial markets now look to the U.S Non-farm payrolls job report, with economists expecting 190,000 new jobs were created during December.

The EURUSD pair is strong bullish while trading above the 1.2050 level, intraday targets above the 1.2093 level are 1.2150 and 1.2200.

Should the EURUSD pair decline below the 1.2050 level, again, sellers will look to test the key 1.2030 region and the psychological 1.2000 level.

The British pound has continued to erase losses against the U.S dollar, with price action reaching the 1.3570 level during today’s Asian trading session. The GBPUSD pair currently trades above the key 1.3567 resistance level, with the 1.3610 level the next major technical barrier ahead for buyers. Sterling’s rise from the 1.3500 support level has taken place on minimal trading volume, with genuine buying momentum in the pair still at depressed levels. The main market moving event today is this December Nonfarm Payrolls job report, volatility in the GBPUSD pair is likely to increase after the report is released.

The GBPUSD pair is strongly bullish above the 1.3567 level, upside targets above the 1.3610 resistance area are 1.3657 and 1.3710.

Should price-action on the GBPUSD pair fall below the 1.3567 level, decline towards the 1.3550 and 1.3500 support regions seems likely.