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Daily Pivots: (S1) 0.8888; (P) 0.8910; (R1) 0.8948; More...

Intraday bias in EUR/GBP remains on the upside for the moment. Fall from 0.9305 should have completed at 0.8745 already. Sustained break of 55 day EMA (now at 0.8936) will pave the way to retest 0.9305 key resistance. On the downside, below 0.8745 will extend the fall from 0.9305. However, as such decline is seen as the third leg of consolidation pattern from 0.9304. We'll look for bottoming signal again at it approaches 0.8303 support.

In the bigger picture, price actions from 0.9304 are viewed as a medium term corrective pattern. It's still in progress with fall from 0.9305 as the third leg. Break of 0.8303 could be seen. But even in that case, we'd expect strong support from 0.8116 cluster support (50% retracement of 0.6935 to 0.9304 at 0.8120) to contain downside. Whole up trend from 0.6935 is expected to resume after consolidation from 0.9304 completes.

Daily Pivots: (S1) 1.4964; (P) 1.5006; (R1) 1.5062; More....

Intraday bias in EUR/AUD remains neutral as consolidation from 1.5173 is still in progress. On the upside, break of 1.5173/5226 resistance zone will finally resume larger rise from 1.3624. In that case, EUR/AUD will target 1.5644 resistance first. On the downside, break of 1.4791 support will turn bias to the downside and extend the fall from 1.5173 to retest 1.4421 support.

In the bigger picture, we're holding on to the view that corrective decline from 1.6587 medium term top has completed at 1.3624. Rise from 1.3624 is expected to extend to retest 1.6587. The corrective structure of the price actions from 1.5226 is affirming this view. Above 1.5226 will target a test on 1.6587 key resistance. However, break of 1.4421 support will dampen our view and would drag EUR/AUD lower to retest key support zone around 1.3624.

Daily Pivots: (S1) 1.1439; (P) 1.1467; (R1) 1.1483; More...

Despite breaching 1.1487 minor resistance, EUR/CHF fails to sustain above so far. Intraday bias remains neutral first. On the upside, firm break of 1.1487 minor resistance will suggest that the pull back is completed and bring retest of 1.1622. Meanwhile, below 1.1387 will extend the correction from 1.1622 to 1.1257 cluster support (38.2% retracement of 1.0652 to 1.1622 at 1.1251). Strong support is expected there to contain downside and bring rebound.

In the bigger picture, long term rise from SNB spike low back in 2015 is still in progress. EUR/CHF should now be heading back to prior SNB imposed floor at 1.2000. For now, this will be the favored case as long as 1.1198 resistance turned support holds.

The euro has moved below the key 1.1710 technical level against the U.S dollar, hitting 1.1685 during the Asian session, as U.S fundamentals improve and tension in Catalonian look likely to continue well into the weekend.

After a series of hawkish speeches from FOMC members on Thursday, the trading sentiment surrounding the U.S dollar has improved, pressuring the EURUSD pair lower on Friday.

Traders will now look for a series of higher time-frame price closes beneath the 1.1710 level, to cement the next round of technical selling on the EURUSD.

Markets may also remain somewhat cautious, ahead of the release of the U.S Non-farm payrolls job report for the month of September.

Key intraday support for the EURUSD is found at the pairs key 100-day moving average, at 1.1670, and the August monthly price-low, at 1.1662. Once below 1.1662, traders will look to further weekly support from 1.1616 and 1.1580.

To the upside, key resistance is found at 1.1710, and the pairs daily pivot point, at 1.1730. Further intraday resistance is also found at 1.1758 and 1.1800.

The global financial markets converge on US nonfarm payrolls on Friday. The monthly report is expected to show a dismal pace of hiring for the world’s largest economy after a pair of devastating hurricanes ripped through the southern states of Texas and Florida.

European markets open with a report on German factory orders, which is due at 06:00 GMT. Orders are projected to climb 0.7% in August after falling 0.7% the month before. Compared to August 2017, factory orders likely rose 4.7%, forecasts show.

France will release its latest trade figures at 06:45 GMT. The Eurozone’s second-largest economy is expected to report a trade deficit of €5.4 billion, down from €6 billion the month before. Separately, MINEFA will also release the French budget balance for August.

Data on Spanish industrial production and Italian retail sales will be released over the next hour or so, leading us to the start of North American trade.

The US Department of Labor will release its nonfarm payrolls report at 12:30 GMT. The release is expected to show the addition of 90,000 nonfarm jobs in September, down from an August growth rate of 156,000. The jobless rate likely held steady at 4.4%.

Analysts say average hourly earnings probably rose 0.3% on month and 2.5% annually.

At the same time, the Canadian government will also release its latest jobs figures. Canada’s economy is projected to add 14,500 jobs in September, following a gain of 22,200 the month before.

Later in the session, Federal Reserve Governors William Dudley, Robert Kaplan and James Bullard will deliver speeches that will be closely monitored by the financial markets. The Fed will hold its second-to-last policy meeting of 2017 on 31 October, with the official rate statement scheduled for the following afternoon. No change in policy is expected until at least December.

EUR/USD

The euro reversed course on Thursday and is now trading below 1.17 US. The EUR/USD has been on a sharp downtrend for the past two weeks, as the dollar rebounded against a basket of world peers. Weakness below 1.1725 puts the pair on track for a re-test of the 1.1675 region. On the opposite side of the ledger, the immediate resistance zone is likely found around 1.1800.

USD/CAD

After a disastrous month of August, the USD/CAD has been on a gradual uptrend back toward the 1.2600 region. The pair is converging on that handle, having gained nearly 500 pips since 8 September. The Canadian dollar could see further upside in the months ahead as the Bank of Canada signals for higher interest rates. For now, the pair is looking to steamroll 1.2600 en route for two-month highs near 1.2700.

GBP/USD

Cable broke below 1.31 on Friday to trade at one-month lows. The currency pair is down 0.3% at 1.3085. Although there are some signs that the selloff is overdone, a stronger dollar could push the GBP/USD back toward the critical 1.3000 threshold in the near term.

Daily Pivots: (S1) 1.1678; (P) 1.1729 (R1) 1.1759; More...

No change in EUR/USD's outlook. As long as 1.1832 resistance holds, fall from 1.2091 is expected to extend lower. Such decline is correcting whole rise from 1.0569. Deeper fall should be seen to 38.2% retracement of 1.0569 to 1.2091 at 1.1510, where we're expecting support to bring rebound. On the upside, break of 1.1832 minor resistance will suggest that the corrective fall is completed and turn bias back to the upside.

In the bigger picture, rise from medium term bottom at 1.0339 is not finished yet. It's expected to continue after pull back from 1.2091 completes. And, next target will be 38.2% retracement of 1.6039 (2008 high) to 1.0339 (2017 low) at 1.2516. However, it should be noted that there is no confirmation of trend reversal yet. That is, such rebound from 1.0399 could be a correction. And the long term fall from 1.6039 (2008 high) could resume. Hence, we'd be cautious on strong resistance from 1.2516 to limit upside.

Daily Pivots: (S1) 1.3066; (P) 1.3158; (R1) 1.3208; More....

GBP/USD's decline from 1.3651 is still in progress and dives to as low as 1.3059 so far. 61.8% retracement of 1.2773 to 1.3651 at 1.3108 is taken out but no sign of bottoming is seen. Intraday bias stays on the downside for 1.2773 support next. On the upside, break of 1.3290 resistance is needed to confirm short term bottoming. Otherwise, outlook will remain mildly bearish in case of recovery.

In the bigger picture, current development argues that the long term trend in GBP/USD has reversed. That is, a key bottom was formed back in 1.1946 on bullish convergence condition in monthly MACD. Current rise from 1.1946 will target 38.2% retracement of 2.1161 (2007 high) to 1.1946 (2016 low) at 1.5466 next. In any case, medium term outlook will now stay bullish as long as 1.2773 support holds.

Daily Pivots: (S1) 0.9750; (P) 0.9773; (R1) 0.9805; More....

The break of 0.9772 resistance, and sustained trading above medium term channel resistance, argues that fall from 1.0342 is already completed. And the trend is reversing. intraday bias is now on the upside for 61.8% retracement of 1.0342 to 0.9420 at 0.9990. On the downside, break of 0.9708 support will dampen this bullish view and turn focus back to 0.9587 support instead.

In the bigger picture, current development suggests that USD/CHF has defended 0.9443 (2016 low) key support level again. Rise from 0.9420 could develop into a medium term move and target a test on 1.0342 high. This represents the upper end of a long term range that started back in 2015. On the downside, break of 0.9587 support is now needed to indicate completion of the rise from 0.9420. Otherwise, further rally will remain in favor in medium term.

Daily Pivots: (S1) 112.51; (P) 112.71; (R1) 113.02; More....

Intraday bias in USD/JPY remains neutral as it's staying in tight range below 113.25. On the upside, sustained break of medium term channel resistance will argue that correction from 118.65 is already completed with three waves down to 107.31. Break of 114.49 will confirm this bullish case and target a test on 118.65 next. On the downside, considering bearish divergence condition in 4 hour MACD, break of 111.46 will suggest rejection from the channel resistance and turn bias back to the downside.

In the bigger picture, rise from 98.97 (2016 low) is seen as the second leg of the corrective pattern from 125.85 (2015 high). It's unclear whether this this second leg has completed at 118.65 or not. But medium term outlook will be mildly bearish as long as 114.49 resistance holds. And, there is prospect of breaking 98.97 ahead. Meanwhile, break of 114.49 will bring retest of 125.85 high. But even in that case, we don't expect a break there on first attempt.

Key Highlights

• The US Dollar is trading above the 112.50 support against the Japanese Yen, and poised for more gains.
• There is a crucial contracting triangle forming with resistance near 113.20 on the 4-hours chart of USD/JPY.
• Japan's Leading Economic Index in August 2017 (Prelim) came in at 106.8, up from the last 105.2.
• Today in the US, the Nonfarm payrolls figure will be released for Sep 2017, which is forecasted to register 90K, down from 156K.

USDJPY Technical Analysis

The US Dollar remains in a nice uptrend above 112.00 against the Japanese Yen. The USD/JPY pair seems to be preparing for an upside break above 113.20 to test 114.00 in the near term.

Looking at 4-hours chart, the pair is well above the 100 simple moving average (Red) and 112.20. It is a positive sign and points more gains in the near term above 113.00.

At the outset, there is a crucial contracting triangle forming with resistance near 113.20 on the same chart. If buyers remain in control, there is a chance of an upside break above the channel resistance at 113.20.

The next major hurdle is near 114.00. On the downside, the channel support at 112.50-60 is a major buy zone and most likely to protect declines in USD/JPY.

Japan's Leading Economic Index

Today in Japan, the Leading Economic Index preliminary reading for August 2017 was released by the Cabinet Office. The forecast was slated for an increase from the last reading of 105.2 to 107.2.

The actual result was on the lower side, as there was a rise to 106.8. On the other hand, the Coincident Index preliminary reading was forecasted to rise from 115.7 to 117.5 in August 2017. The actual was better, the index rose to 117.6.

The results were neutral and might not help the Japanese Yen, which means the USD/JPY remains poised for a move above 113.20.

Economic Releases to Watch Today

US nonfarm payrolls Sep 2017 – Forecast 90K, versus 156K previous.

US Unemployment Rate Sep 2017 – Forecast 4.4%, versus 4.4% previous.

US Average Hourly Earnings (MoM) Sep 2017 – Forecast 0.3%, versus 0.1% previous.

Canada's employment Change payrolls Sep 2017 – Forecast 14.5K, versus 22.2K previous.

Canada's Unemployment Rate Sep 2017 – Forecast 6.3%, versus 6.2% previous.

Canada's Ivey PMI Sep 2017 – Forecast 56.0, versus 56.3 previous.