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EUR/CHF uptrend is supporting the pair bullish momentum. Hourly resistance lies at 1.1538 (04/08/2017 high). Hourly support is located at 1.1260 (04/08/2017 low). Expected to show further bullish consolidation.

In the longer term, the technical structure has reversed. Strong resistance is given at 1.20 (level before the unpeg). Yet, the ECB's QE programme is likely to cause persistent selling pressures on the euro, which should weigh on EUR/CHF. Supports can be found at 1.0184 (28/01/2015 low) and 1.0082 (27/01/2015 low).

EUR/GBP's has weakened thru uptrend but support at 0.9142 should hold. Hourly resistance lies at 0.9306 (29/07/2017 high). Hourly support is given at 0.9189 (24/08/2017 low).

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

AUD/USD has bounced off uptrend support, opening the way for a test of strong resistance at 0.7986. Hourly support can be found at 0.7786 (18/07/2017 low). Hourly resistance is given at 0.8066 (27/07/2017 high). Expected to further consolidate.

In the long-term, the trend is largely negative since 2011. Key supports stands at 0.6009 (31/10/2008 low) . A break of the key resistance at 0.8295 (15/01/2015 high) is needed to invalidate our long-term bearish view.

USD/CAD selling pressures are back after breaking hourly support at 1.2414 (27/07/2017 low). Resistance is now given at a distance at 1.2778 (15/08/2017 low). Expected to show continued short-term bearish pressures if resistance at 1.2778 holds.

In the longer term, the pair has broken longterm support that can be found at 1.2461 (16/03/2015 low). Strong resistance is given at 1.4690 (22/01/2016 high). The pair is likely to head further lower.

USD/CHF is trading mixed with strong volatility. Strong resistance is given at 0.9771 (15/06/2017 high). The pair is likely to head further lower below 0.9500. Expected to show renewed bearish pressures.

In the long-term, the pair is still trading in range since 2011 despite some turmoil when the SNB unpegged the CHF. Key support can be found 0.8986 (30/01/2015 low). The technical structure favours nonetheless a long term bullish bias since the unpeg in January 2015.

USD/JPY further declined today confirming increasing selling pressures. The pair has failed to test resistance at 111.05 (04/08/2017 high). Support is located at 108.13 (14/06/2017 low). Expected to show further downside pressures.

We favor a long-term bearish bias. Support is now given at 99.02 (10/08/2013 low). A gradual rise towards the major resistance at 125.86 (05/06/2015 high) seems unlikely. Expected to decline further support at 93.79 (13/06/2013 low).

GBP/USD is recovering after its recent massive sell-off. Monitor the test of resistance at 1.2995 (01/09/2017). Hourly support is given at 1.2774 (24/08/2017 high) while hourly resistance is given at 1.2979 (29/08/2017 high). Expected to show short-term bearish pressures.

The long-term technical pattern is even more negative since the Brexit vote has paved the way for further decline. Long-term support can be found at 1.1841 (07/10/2017 low). Long-term resistance is given around 1.35 and would indicate a long-term reversal in the negative trend. Yet, it is very unlikely at the moment.

EURUSD is consolidating after massive bullish rally. Hourly resistance can be found at 1.2070 (29/08/2017 high) while hourly support lies at 1.1820 (31/08/2017 low). Stronger support is given at a distance at 1.1662 (17/08/2017 low). Expected to show renewed bullish pressures.

In the longer term, the momentum is now turning largely positive. We favour a continued bullish bias. Key resistance is holding at 1.2252 (25/12/2014 high) while strong support lies at 1.0341 (03/01/2017 low).

WTI Oil cracked strong resistance at $47.42 (Fibo 38.2% of $50.41/$45.57 descend) on Monday but without clear break higher for now.

Extension of strong two-day rally on Thu/Fri which broke above daily cloud (cloud twists today) may rise to $47.99 (daily Kijun-sen) on firm break above $47.42 pivot.

The oil prices regained traction on production outages after Hurricane Harwey, however, rising geopolitical tensions over North Korea may trigger stronger sell-off, as oil is seen as risky asset.

Near-term outlook is positive but firm break above Fibo barrier at $47.42 (reinforced by falling 100SMA) is needed to confirm bullish continuation.

Otherwise, the downside would remain vulnerable, with pullback below daily Tenkan-sen ($47.02) and 55SMA ($46.85) to weaken near-term tone and risk further easing.

Narrow ranges are seen as likely scenario today, due to US Labor Day holiday.

Res: 47.42, 47.66, 47.99, 48.56
Sup: 47.15, 46.85, 46.55, 46.30

Euro Traders Focused on the German Election and the ECB Meeting
Brexit Bill Stalls Negotiations
Fed Members To Create More Volatility

Sea of Red Across Global Markets | Currency Markets Volatile | Gold Sharply Up

There is a sea of red across global markets. European futures are trading sharply lower and picking up the momentum from Asia. North Korea has further escalated the geopolitical tensions over the weekend and the US has called for an emergency meeting of the U.N council. For investors, this does not present a stable environment for investing. Hence, the risk off trade would become more prominent until the dust settles.

The US is looking for more sanctions and President Trump is making clear over and over again that talks only are not going to help. He has called North Korea's action as "hostile and dangerous". The Chinese and the Russians have also shown their strong response to North Korea's reaction. Other safe haven currencies such as the Japanese Yen and the Swiss franc would also find strength due to this situation.

The risk of immediate military action on North Korea by the US is still somewhat remote as the president hasn't provided any clear direction when he would adopt a more dangerous route. So far more economic pressure would be used in the form of strong sanctions.

Euro Traders Focused on the German Election and the ECB Meeting

Over in Germany, it is all about the upcoming election which is not only going to shape the future of the biggest economy of the euro zone but it would also have an enormous impact on the euro if an unfavourable result becomes a reality. The refugee crisis is at the heart of this election, and the recent TV debate between Angela Merkel and Martin Schultz was very much focused on this issue.

Currency traders are going to stay on the edge and remain anxious ahead of the most important event of this week. The European central bank's meeting is on Thursday and policy makers could be announcing their next policy move. The pressure on the policy makers is sizeable due to the improving euro zone's economy. After the latest announcement by the ECB during which they said that the tapering process could be pushed towards the end of this year, currency traders have largely priced in no move in the ECB's policy (due this week).Of course, anything which is not in line with the ECB's communication would be worrisome for the markets.

Brexit Bill Stalls Negotiations

As for Brexit and sterling, it is more about the Brexit bill for the time being. It has blocked all further communications and the entire process is in gridlock as it was expected. The Brexit secretary has called the £50 billion divorce bill as non-sense. But we all know that without paying their bills, there will be no trade talks and this would take more toll on the UK's economy.

Fed Members To Create More Volatility

For the dollar index, the underwhelming jobs data and catastrophe caused by Hurricane Harvey are going to keep the stellar Q2 GDP in the shadow. A large number of Fed officials are slated to make their speeches this week and the contrasting views of the voting committee members would only make the ground more infertile for the dollar bulls.