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Asia Summary

The Apple effect rippled across the region with tech names surging to highs (Hynix 3%; LG Innotek 9%; Murata 4%) after Apple reported better than expected results and iPhone sales. Bond yields softened after tepid inflation lowered expectations for the Fed to hike rates again this year. Dollar weakness remains though moves are muted today. New Zealand Q2 employment came in weaker than expected causing the Kiwi to fall 35pips. In Australia June building approvals fell for the 10th consecutive month y/y to -2.3%, but was better than the expected decline of 11%. Crude oil fell after a surprise inventory build in the weekly API data.

Trump said to be planning to force China to crack down on intellectual-property theft and ease requirements that American companies share advanced technologies to gain entry to the Chinese market; though no specifics were given.

Key economic data

(NZ) NEW ZEALAND Q2 UNEMPLOYMENT RATE: 4.8% V 4.8%E; EMPLOYMENT CHANGE Q/Q: -0.2% V 0.7%E; Y/Y: 3.1% V 4.1%E

(AU) AUSTRALIA JUN BUILDING APPROVALS M/M: 10.9% V 1.0%E; Y/Y: -2.3% (10TH CONSECUTIVE DECLINE) V -11.0%E

(JP) JAPAN JUL MONETARY BASE Y/Y: 15.6% V 17.0% PRIOR; MONETARY BASE END OF PERIOD: ¥468.3T V ¥468.0T PRIOR

Speakers and Press

Hong Kong

(HK) Hong Kong Chief Exec Lam: H1 property prices +6% y/y; to set up panel to discuss land supply

China

(CN) China FX Regulator SAFE said to be examining loan guarantees for top dealmakers - financial press

(CN) China PBOC said to use a wider array of instruments to keep liquidity stable in August - Chinese press

Korea

(KR) US may send 2 aircraft carriers to South Korea to engage in military drills - South Korean Press

(KR) US Sec of State Tillerson: US has been trying to apply 'peaceful pressure' on North Korea, but options are limited

(KR) South Korea announces measures on the housing market; to raise capital gains tax for owners of multipe homes (as expected)

Japan

(JP) Bank of Japan (BoJ) Funo: Reiterates price momentum is still not sufficient for CPI target, still halfway to 2% price target

Other

(UK) National Institute of Economic and Social Research (NIESR): BoE should not wait until Brexit has occurred to raise rates

Asian Equity Indices/Futures (00:00ET)

Nikkei +0.6%, Hang Seng +0.4%, Shanghai Composite +0.1%, ASX200 -0.4%, Kospi +0.2%

Equity Futures: S&P500 +0.1%; Nasdaq +0.8%, Dax +0.1%, FTSE100 +0.1%

FX ranges/Commodities/Fixed Income (00:00ET)

EUR 1.1818-1.1794; JPY 110.70-110.31; AUD 0.7974-0.7942; NZD 0.7474-0.7416

Aug Gold -0.6% at 1,265/oz; Sept Crude Oil -0.9% at $48.74/brl; Sept Copper -0.2% at $2.87/lb

(AU) Australia sells A$900M in 2.75% 2028 bonds, avg yield 2.7523%; bid-to-cover 2.93x

(CN) China PBOC OMO injects CNY120B in 7-day and 14-day reverse repos v CNY170B prior in 7-day

USD/CNY *(CN) PBOC SETS YUAN REFERENCE RATE AT: 6.7205 V 6.7148 PRIOR

(KR) South Korea sells KRW2.6T in 2-yr monetary stabilization bonds; avg yield 1.64% v 1.66% prior

Equities notable movers

Hong Kong/China

SJM, 880.HK Reports H1 (HK$) Net 955.4M v 1.09B y/y; Rev 20.6B v 21.0B y/y; -8%

Japan

Honda,7267.JP Reports Q1 Net ¥207.3B v ¥174.7B y/y; Op ¥269.2B v ¥266.8B y/y; Rev ¥3.71T v ¥3.47T y/y; Raises outlook; +3.2%

Toyota, TM Reports July US sales +3.6% y/y, 222K units v 206.9Ke; -5%

Australia

QBE.AU To refund A$15.9M in add-on insurance premiums – ASIC; -1%

Korea

Doosan Infracore,042670.KR Reports Q2 (KRW) Net 60.4B v 62.4Be, Rev 1.77T v 1.76Te; +2%

Currency pair EUR/USD

The EUR/USD built a small correction after the bullish breakout earlier this week. The bearish retracement stayed above support trend lines (green/blue) and could now be ready for a continuation towards the Fibonacci targets of wave 5 vs 1+3 at 1.1925 and even 1.20.

The EUR/USD seems to have completed a wave 4 (grey) retracement within wave 5 (orange). A bullish breakout above the resistance trend line (red) and the previous top at 1.1850 could indicate the end of wave 4 and the start of wave 5 (grey).

Currency pair USD/JPY

The USD/JPY bounced at the round level of 110, which acted as support and caused the reversal as mentioned yesterday. The bullish breakout above resistance (dotted orange) could signal the completion of wave A (brown) and start of wave B (brown).

The USD/JPY indeed completed a wave 4 (purple) within the 5th wave (orange) before building a potential bullish reversal as indicated in the potential 5 wave (purple).

Currency pair GBP/USD

The GBP/USD reached the 1.3250 quarter level and is now building a correction. A break above the trend line (orange) could indicate a continuation. Whether the wave 3 (blue) will indeed be confirmed depends on how far the GBP/USD will move. A failure to break above the 100% Fibonacci target could indicate an ABC rather than a 123.

The GBP/USD could be building an extension of the wave 3 (green) with 5 internal waves (orange/purple). A pullback could be part of the wave 4 (purple) which means that the Fibonacci levels of wave 4 vs 3 could act as support.

A note on lower timeframe confirming price action...

Waiting for lower timeframe confirmation is our main tool to confirm strength within higher timeframe zones, and has really been the key to our trading success. It takes a little time to understand the subtle nuances, however, as each trade is never the same, but once you master the rhythm so to speak, you will be saved from countless unnecessary losing trades. The following is a list of what we look for:

• A break/retest of supply or demand dependent on which way you're trading.
• A trendline break/retest.
• Buying/selling tails ... essentially we look for a cluster of very obvious spikes off of lower timeframe support and resistance levels within the higher timeframe zone.
• Candlestick patterns. We tend to only stick with pin bars and engulfing bars as these have proven to be the most effective.

We typically search for lower-timeframe confirmation between the M15 and H1 timeframes, since most of our higher-timeframe areas begin with the H4. Stops are usually placed 1-3 pips beyond confirming structures.

EUR/USD

After the single currency topped at 1.1845 on Monday, price clawed back some of Monday's gains yesterday and ended the day retesting the 1.18 handle. As you can see, this psychological band remains unbroken in spite of there being little bullish intent registered from here.

Peering over to the daily picture shows us that price is currently trading within the walls of supply coming in at 1.1870-1.1786. Though this area is fresh and has a strong-looking base, we're a little concerned with weekly price recently crossing above resistance at 1.1759, which could, if the bulls remain in a dominant position, further encourage buying up to a weekly resistance planted at 1.2044.

Our suggestions: As of now, we consider the 1.18 handle to be key. Should it continue to offer support, this could signify the end for our daily supply. On the flip side to that, a close below this number potentially opens up the door to the H4 demand base marked at 1.1723-1.1744 as well as confirms bearish strength from the daily supply.

As we're still short the GBP/USD, we are naturally looking for a break lower!

Data points to consider: US ADP non-farm employment change at 1.15pm GMT+1.

Levels to watch/live orders:

• Buys: Flat (stop loss: N/A).
• Sells: Flat (stop loss: N/A).

GBP/USD

In a similar fashion to the EUR/USD, the GBP/USD also clawed back partial gains on Tuesday. The move saw the unit close back below the H4 channel resistance extended from the high 1.3053 (something we missed in our preliminary analysis) and conclude the day retesting the 1.32 handle.

For those who follow our reports on a regular basis, you may recall that our desk took a short position from 1.3209, with conservative stops planted at 1.3280. Our reasoning behind executing a short position here was primarily due to daily structure surrounding the supply at 1.3278-1.3179 (our stops are positioned two pips above this zone). We have a trendline resistance taken from the high 1.3477, a channel resistance drawn from the high 1.2903 and two converging AB=CD (green/orange arrows) 127.2 Fib extensions at 1.3222/1.3223 (taken from the lows 1.2811/1.2365). Also, for you RSI fans, there is daily divergence in play, as well. Encouragingly, daily price also printed a rather nice-looking selling wick yesterday, thus adding weight to the setup.

Our suggestions: Ultimately, we are looking for H4 price to cross below the 1.32 boundary today as this will not only confirm bearish strength from daily supply, but also open up the path south down to the mid-level base 1.3150.

Data points to consider: UK construction PMI at 9.30am. US ADP non-farm employment change at 1.15pm GMT+1

Levels to watch/live orders:

• Buys: Flat (stop loss: N/A).
• Sells: 1.3209 ([live] stop loss: 1.3280).

AUD/USD

The AUD/USD pair was under noticeable pressure on Tuesday, following the RBA monetary policy statement released in early trading.

As of current price, we can see that H4 flow is, once again, now challenging support at 0.7963, which happens to fuse closely with a H4 trendline support taken from the high 0.7987, a nearby H4 mid-level support at 0.7950 and also a H4 61.8% Fib support at 0.7950 drawn from the low 0.7877. Judging by the recent H4 candle action, however, the current support looks vulnerable, in our opinion. In addition to this, both the weekly and daily timeframes show room to extend lower, with the closest support seen at daily demand drawn from 0.7874-0.7922. Further adding to this, it's clear to see that the H4 candles are in the process of chalking up a D-leg to an AB=CD bullish formation (black arrows) which completes just ahead of the 0.79 handle (the 127.2% ext. at 0.7905).

Our suggestions: In the long run, we do believe the Aussie is still heading lower. However, selling this market is awkward. Not only do we have to wait for H4 price to close below 0.7950 to be clear of immediate support, we're then unfortunately left with little space for a reasonable sell given that the top edge of the daily demand area is located nearby at 0.7922!

Data points to consider: Australian Building approvals at 2.30am. US ADP non-farm employment change at 1.15pm GMT+1.

Levels to watch/live orders:

• Buys: Flat (stop loss: N/A).
• Sells: Flat (stop loss: N/A).

USD/JPY  

Try as it might, the USD/JPY could not muster enough strength to breach the 110 handle on Tuesday. As a result of this, the pair is currently seen teasing the mid-level resistance pegged at 110.50.

From the weekly timeframe, the market looks as though it could continue to press lower until we reach the small demand base seen at 108.13-108.95. Zooming in and looking at the daily picture, we can see that price looks poised to retest 110.76 as resistance. Should this come to fruition, we could see the unit potentially reverse from here and challenge the Quasimodo support logged at 109.11, which happens to unite closely with a trendline support etched from the low 108.13.

Our suggestions: With the higher-timeframe picture suggesting that further selling could be on the cards, we have our eye on the 111 handle today. This number – coupled with a nice-looking H4 Fibonacci resistance cluster (50.0%/61.8%/78.6% taken from the highs 112.19/111.71/111.28) and June's opening level at 110.83, makes for a strong-looking sell base (green zone).

However, since there's a risk of price faking beyond our sell zone to test May's opening level seen nearby at 111.31, we would strongly advise waiting for lower-timeframe confirming action (see the top of this report for details), before pulling the trigger.

Data points to consider: US ADP non-farm employment change at 1.15pm GMT+1.

Levels to watch/live orders:

• Buys: Flat (stop loss: N/A).
• Sells: 111.07/110.83 ([Waiting for a lower-timeframe confirming signal to form is advised before pushing the sell button here] stop loss: dependent on where one confirms the area).

USD/CAD

Based on recent movement, the weekly chart shows price to be challenging resistance at 1.2538. With this level having been a strong support base in the past, it is highly likely we'll see some selling pressure here. A closer look at price action reveals that daily price is currently hovering just ahead of a broken daily Quasimodo level positioned at 1.2592.

A quick recap of Tuesday's action on the H4 chart reveals that the unit is currently kissing the underside of a mid-level resistance at 1.2550, after aggressively rallying from the mid-level support at 1.2450. The next upside target beyond 1.2550 is the 1.26 handle, which happens to unite closely with a 61.8% Fib resistance at 1.2591 extended from the high 1.2701 and a mini Quasimodo resistance pegged at 1.2605.

Our suggestions: With all three timeframes suggesting a sell, along with the trend on this pair pointing to the downside, we will be looking to short from the 1.26 vicinity today. With that being said, however, due to psychological levels being prone to fakeouts, we will only sell this market if the pair chalks up a reasonably sized H4 bearish candle, preferably in the shape of a full, or near-full-bodied candle.

Data points to consider: US ADP non-farm employment change at 1.15pm. Crude oil inventories at 3.30pm GMT+1.

Levels to watch/live orders:

• Buys: Flat (Stop loss: N/A).
• Sells: 1.26 region ([waiting for a full or near-full-bodied bearish candle to emerge is advised] stop loss: ideally beyond the candle's wick).

USD/CHF

Despite the USD/CHF trading from a weekly trendline resistance extended from the low 0.9257, and daily price trading from a highly confluent supply base at 0.9738-0.9691 (converges with a channel resistance extended from the high 0.9808 and a 38.2% Fib resistance at 0.9693 taken from the high 1.0099) at the moment, the bears are seen struggling to overcome H4 demand at 0.9627-0.9648. The next H4 resistance in view is June's opening level at 0.9680, followed closely by the 0.97 handle. Should these levels fail to provide resistance, then the last remaining resistance on the radar is a H4 trendline resistance taken from the low 0.9775.

Our suggestions: For those wishing to sell, we would advise watching how the H4 candles respond once the pair is in contact with 0.97/0.9680. Should you happen to pin down a nice-looking H4 bearish candle, preferably in the shape of a full, or near-full-bodied candle, then a sell from this neighborhood could be an option today.

Data points to consider: US ADP non-farm employment change at 1.15pm GMT+1.

Levels to watch/live orders:

• Buys: Flat (stop loss: N/A).
• Sells: 0.97/0.9680 region ([waiting for a full or near-full-bodied bearish candle to emerge is advised] stop loss: ideally beyond the candle wick).

DOW 30

In recent trading, the H4 candles shook hands with a channel resistance extended from the high 21493. As a result of this, a relatively nice-looking bearish selling wick took shape. Could this be enough to trigger a move down to the neighboring channel support taken from the low 21273?

While, of course, this is a possibility, one has to remain cognizant of the surrounding landscape. Both weekly and daily action shows absolutely no resistance on the horizon given that the index is trading at record highs at the moment. The flip side to this, however, is the closest support on the bigger picture does not come into play until daily support at 21664.

Our suggestions: Although there is a chance that this market may head south to test the H4 channel support given the lack of nearby higher-timeframe support, we would not feel comfortable selling the recent move north that is shaped by six strong consecutive daily bull candles.

Data points to consider: US ADP non-farm employment change at 1.15pm GMT+1.

Levels to watch/live orders:

• Buys: Flat (stop loss: N/A).
• Sells: Flat (stop loss: N/A).

GOLD

Gold prices pulled back yesterday as the dollar index marginally recovered from a low of 92.78. As you can see, H4 price failed to sustain gains beyond resistance at 1269.8, which saw the metal come within a few inches of H4 supply at 1281.1-1275.4.

From both the H4 and daily timeframes, we see little reason why the metal will not continue to punch lower and connect with daily support registered at 1258.9, which happens to converge with a H4 trendline support etched from the low 1235.1.

Our suggestions: A long from 1258.9 is promising, not only because it's a noted daily support level and fuses with a H4 trendline support, but also since there is room seen on the both the weekly and daily charts for the unit to extend north, as far as the 1280.0ish region.

Levels to watch/live orders:

• Buys: 1258.9 region (waiting for a full or near-full-bodied bullish candle to emerge is advised] stop loss: ideally beyond the candle tail).
• Sells: Flat (stop loss: N/A).

Global Markets:

• Asian stock markets: Nikkei up 0.60 %, Shanghai Composite gained 0.05 %, Hang Seng rose 0.40 %, ASX 200 fell 0.40 %
• Commodities: Gold at $1264 (-0.65 %), Silver at $16.60 (-0.90 %), WTI Oil at $48.70 (-0.95 %), Brent Oil at $51.30 (-0.90 %)
• Rates: US 10 year yield at 2.27, UK 10 year yield at 1.22, German 10 year yield at 0.48

News & Data:

• New Zealand Employment Change q/q -0.2 % vs 0.7 % expected
• New Zealand Unemployment Rate 4.8 % vs 4.8 % expected
• Australia Building Approvals 10.9 % m/m vs 1.5 % expected
• Asia tech stocks bathe in Apple glow, dollar overshadowed – RTRS
• U.S. spending, factory data point to moderate economic growth – RTRS

Markets Update:

The US Dollar regained some strength overnight, while Asian stock markets picked up the positive sentiment from Wall Street and extended gains.

The New Zealand Dollar was the worst performing currency overnight. Employment data disappointed, with employment chage arriving at -0.2 %. The market expected an increase of 0.7 %. NZD/USD fell from 0.7470 to 0.7410. Key support is seen around 0.7380, but a break below that level would signal a retracement to at least 0.73.

The Aussie Dollar is also a tad weaker, but benefited from AUD/NZD buying. AUD/USD fell to 0.7940, and a clear break below 0.7935 would confirm the recent top at 0.8060. Nevertheless, the outlook for the Aussie Dollar remains positive amid solid risk appetite and rising commodity prices. AUD/USD should run into decent demand around 0.7880 and 0.7830.

Meanwhile, the British Pound looks quite overbought in the short-term and a retracement is likely in the near-term. Further, Brexit concerns and a reluctant Bank of England should keep the currency under pressure. Watch for initial support at 1.3150, and stronger one ahead of 1.31.

The Euro looks unstoppable, although the charts also suggest EUR/USD is heavily overbought in the short-term. Nevertheless, momentum remains strong and there is little resistance until 1.20 now. Support is seen at 1.1780 and 1.1720.

Upcoming Events:

• 09:30 BST – UK Construction PMI
• 13:15 BST – US ADP Nonfarm Employment Change
• 15:30 BST – US Crude Oil Inventories

For the 24 hours to 23:00 GMT, the AUD declined 0.5% against the USD and closed at 0.7962.

LME Copper prices declined 0.7% or $46.5/MT to $6300.5/MT. Aluminium prices declined 0.9% or $17.0/MT to $1887.0/MT.

In the Asian session, at GMT0300, the pair is trading at 0.7947, with the AUD trading 0.19% lower against the USD from yesterday's close.

Earlier in the session, data indicated that Australia's seasonally adjusted building approvals rebounded more-than-expected by 10.9% on a monthly basis in June, rising at the fastest pace since July 2016. Building approvals had registered a revised fall of 5.4% in the prior month, while markets expected for a gain of 1.0%.

The pair is expected to find support at 0.7912, and a fall through could take it to the next support level of 0.7876. The pair is expected to find its first resistance at 0.8013, and a rise through could take it to the next resistance level of 0.8078.

Looking forward, market participants will keep a close watch on Australia's AiG performance of service index for July, due to release overnight, followed by the nation's trade balance for June, slated in the early hours of tomorrow.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the EUR declined 0.17% against the USD and closed at 1.1808, shrugging off robust GDP report from the Euro-zone.

Data showed that the Euro-zone's seasonally adjusted flash gross domestic product (GDP) advanced 0.6% on a quarterly basis in the second quarter of 2017, meeting market expectations, thus painting a bright picture of the region's economy that could allow the European Central Bank (ECB) to scale back its monetary stimulus programme before the end of the year. In the previous quarter, the region's GDP had registered a revised rise of 0.5%.

On the other hand, the region's final Markit manufacturing PMI was revised lower to a level of 56.6 in July, compared to a preliminary print indicating a fall to a level of 56.8. In the previous month, the PMI had registered a reading of 57.4.

Separately, Germany's manufacturing sector growth slowed more than initially estimated, after the final Markit manufacturing PMI fell to a level of 58.1 in July, compared to a drop to a level of 58.3 recorded in the flash estimate. In the prior month, the PMI had registered a reading of 59.6.

Meanwhile, the nation's seasonally adjusted unemployment rate remained steady at 5.7% in July, meeting market expectations.

Macroeconomic data revealed that the US ISM manufacturing activity index dropped more-than-expected to a level of 56.3 in July, amid a slowdown in new orders. The index had recorded a reading of 57.8 in the prior month, while investors had envisaged for a decline to a level of 56.4. Also, the nation's construction spending unexpectedly eased 1.3% on a monthly basis in June, as spending on government projects plummeted by the most in 15 years. Construction spending had registered a revised advance of 0.3% in the prior month, compared to market consensus for an increase of 0.4%.

On the other hand, the nation's personal spending rose 0.1% in June, at par with market expectations. In the prior month, personal spending had risen by a revised 0.2%. Meanwhile, the nation's personal income surprisingly remained flat in June, compared to market expectations for a gain of 0.4%. In the prior month, personal income had risen by a revised 0.3%. Further, the nation's final Markit manufacturing PMI was revised higher to a level of 53.3 in July, compared to an advance to a level of 53.2 reported in the flash estimate. The PMI had recorded a reading of 52.0 in the prior month.

In the Asian session, at GMT0300, the pair is trading at 1.1805, with the EUR trading marginally lower against the USD from yesterday's close.

The pair is expected to find support at 1.1780, and a fall through could take it to the next support level of 1.1756. The pair is expected to find its first resistance at 1.1834, and a rise through could take it to the next resistance level of 1.1864.

Going ahead, investors will look forward to the Euro-zone's producer price index for June, slated to release in a few hours. Additionally, the US ADP jobs report for July, scheduled to release later in the day, will pique significant amount of investor attention.

The currency pair is trading below its 20 Hr moving average and showing convergence with its 50 Hr moving average.

For the 24 hours to 23:00 GMT, the GBP rose 0.06% against the USD and closed at 1.3209, after data showed UK's manufacturing sector grew better-than-expected in July.

The Markit manufacturing PMI in the UK expanded more-than-expected to a level of 55.1 in July, as export orders surged to a seven-year high, thus hinting that the nation's manufacturing sector gathered momentum in the third quarter of 2017. The PMI had recorded a revised level of 54.2 in the previous month, while markets were expecting for a rise to a level of 54.5.

Additionally, the nation's seasonally adjusted Nationwide house prices unexpectedly rose 0.3% MoM in July, confounding market expectations for a fall of 0.1%. In the previous month, house prices had risen 1.1%.

In the Asian session, at GMT0300, the pair is trading at 1.3201, with the GBP trading 0.06% lower against the USD from yesterday's close.

The pair is expected to find support at 1.3180, and a fall through could take it to the next support level of 1.3158. The pair is expected to find its first resistance at 1.3234, and a rise through could take it to the next resistance level of 1.3266.

Moving ahead, market participants will focus on Britain's Markit construction PMI for July, slated to release in a few hours.

The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.

For the 24 hours to 23:00 GMT, the USD marginally rose against the JPY and closed at 110.36.

In the Asian session, at GMT0300, the pair is trading at 110.54, with the USD trading 0.16% higher against the JPY from yesterday’s close.

Overnight data indicated that Japan’s monetary base climbed 15.6% on an annual basis in July. The monetary base had risen 17.0% in the prior month.

The pair is expected to find support at 110.11, and a fall through could take it to the next support level of 109.69. The pair is expected to find its first resistance at 110.78, and a rise through could take it to the next resistance level of 111.03.

Going ahead, Japan’s Nikkei services PMI for July, set to be released overnight, will be on investors’ radar.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the USD declined 0.18% against the CHF and closed at 0.9656.

In the Asian session, at GMT0300, the pair is trading at 0.9668, with the USD trading 0.12% higher against the CHF from yesterday’s close.

The pair is expected to find support at 0.9638, and a fall through could take it to the next support level of 0.9609. The pair is expected to find its first resistance at 0.969, and a rise through could take it to the next resistance level of 0.9713.

Ahead in the day, traders will closely monitor Switzerland’s SECO consumer confidence and SVME–PMI, both for July along with retail sales data for June.

The currency pair is trading above its 20 Hr moving average and showing convergence with its 50 Hr moving average.

For the 24 hours to 23:00 GMT, the USD rose 0.42% against the CAD and closed at 1.2549.

On the data front, Canada's Markit manufacturing PMI advanced to a level of 55.5 in July, after recording a level of 54.7 in the preceding month.

In the Asian session, at GMT0300, the pair is trading at 1.2573, with the USD trading 0.19% higher against the CAD from yesterday's close.

The pair is expected to find support at 1.2491, and a fall through could take it to the next support level of 1.2410. The pair is expected to find its first resistance at 1.2614, and a rise through could take it to the next resistance level of 1.2656.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.