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The pair remains in red on Monday and extends last Friday's strong fall below key supports at 110.97 (Fibo 61.8% of 108.80/114.49 upleg) and 110.74 (daily cloud base). Fresh extension lower confirms firm bearish bias and opens psychological 110.00 support for test. Broken daily cloud now turned to resistance (spanned between 110.74 and 111.23), followed by cluster of broken daily SMA's (laying between and 111.68 and 112.11) marking next strong resistance zone (bear-crosses of 100/200 and 55/200 SMA's have been already formed) and maintaining downside pressure. Close below daily cloud is needed to confirm bears, however, corrective action could be anticipated in the near-term, as slow stochastic on daily chart is oversold.

Res: 110.74, 110.97, 111.23, 111.47
Sup: 110.50, 110.23, 110.14, 110.00

Daily Pivots: (S1) 143.84; (P) 144.59; (R1) 145.12; More

Intraday bias in GBP/JPY remains on the downside as fall from 147.76 is in progress. Sustained trading below 55 day EMA (now at 144.04) will target 138.65 support and below. But we'd expect strong support from 135.58 to contain downside and bring rebound. On the upside, above 146.27 minor resistance will turn bias back to the upside for 147.76 instead.

In the bigger picture, rise from medium term bottom at 122.36 is expected to continue to 38.2% retracement of 196.85 to 122.36 at 150.43. Decisive break there will carry long term bullish implications and pave the way to 61.8% retracement at 167.78. In case the sideway pattern from 148.42 extends, we'd be looking for strong support from 135.58 and 50% retracement of 122.36 to 148.42 at 135.39 to contain downside.

Daily Pivots: (S1) 129.22; (P) 129.86; (R1) 130.23; More...

EUR/JPY is still bounded in consolidation from 130.76 and intraday bias remains neutral. Deeper fall could be seen. But downside should be contained by 127.43 cluster support (38.2% retracement of 122.39 to 130.76 at 127.56) and bring rebound. Above 130.76 will extend the larger rally to next key fibonacci level at 134.20.

In the bigger picture, the down trend from 149.76 (2014 high) is completed at 109.03 (2016 low). Current rally from 109.03 should be at the same degree as the fall from 149.76 to 109.03. Further rise is expected to 61.8% retracement of 149.76 to 109.03 at 134.20. Sustained break there will pave the way to key long term resistance zone at 141.04/149.76. Medium term outlook will remain bullish as long as 124.08 resistance turned support holds.

USD/JPY still lies in a bearish momentum. Hourly support is given at 110.65 (16/06/2016 low). Stronger support is located at a distance at 108.13 (17/04/2017 low). Expected to show continued bearish pressures.

We favor a long-term bearish bias. Support is now given at 96.57 (10/08/2013 low). A gradual rise towards the major resistance at 135.15 (01/02/2002 high) seems absolutely unlikely. Expected to decline further support at 93.79 (13/06/2013 low).

GBP/USD is around the 1.3000 mark. Hourly resistance is given at 1.3126 (16/07/2017 high). Hourly support is given at 1.2933 (20/07/2017 low). Expected to show renewed 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 given at 1.0520 (01/03/85) represents a decent target. Long-term resistance is given at 1.5018 (24/06/2015) and would indicate a long-term reversal in the negative trend. Yet, it is very unlikely at the moment.

Daily Pivots: (S1) 1.1004; (P) 1.1046; (R1) 1.1070; More...

Intraday bias in EUR/CHF remains neutral for consolidation below 1.1087. At this point, we'd expect downside to be contained by 1.0986 cluster support (38.2% retracement of 1.0830 to 1.1087 at 1.0989) and bring rise resumption. Break of 1.1087 will target key resistance at 1.1127/98. However, break of 1.0986/89 will indicate short term topping, possibly on bearish divergence condition in daily MACD. In such case, deeper fall would be seen back to 55 day EMA (now at 1.0918) and below.

In the bigger picture, the price actions from 1.1198 are seen as a corrective move. Such correction could have completed after defending 38.2% retracement of 0.9771 to 1.1198 at 1.0653. Decisive break of 1.1198 will resume the long term rise from SNB spike low back in 2015. In such case, EUR/CHF could eventually head back to prior SNB imposed floor at 1.2000. We'll favor this bullish case as long as 1.0830 support holds. However, rejection from 1.1198 will extend the multi-year range trading with another fall.

EUR/USD bullish pressures continue. Hourly resistance given at 1.1584 (18/07/2017 high) has been broken. Hourly support can be found at 1.1371 (13/07/2017 high). Stronger support lies at 1.1292 (28/06/2017 low). Expected to show continued bullish pressures.

In the longer term, the momentum is clearly negative. We favour a continued bearish bias towards parity. Key resistance holding at 1.1714 (24/08/2015 high) is on target while strong support lies at 1.0341 (03/01/2017 low).

The euro has edged lower in the Monday session. Currently, EUR/USD is trading at 1.1650. On the release front, it's a busy day in the eurozone. German and Eurozone Manufacturing PMIs softened in July and missed expectations. In the US, today's key event is Existing Home Sales, which is expected to drop to 5.59 million. On Tuesday, Germany will release Ifo Business Climate and the US publishes CB Consumer Confidence.

Eurozone and German manufacturing PMIs dropped in July, disappointing the markets. Still the indicators point to continuing expansion in the German and eurozone manufacturing sectors. This is a result of stronger global demand for European exports, as well as an improvement in domestic consumer consumption. The euro enjoyed a strong week, gaining 1.6%. Earlier on Monday, EUR/USD touched a high of 1.1684, its highest level since August 2015. On Thursday, the ECB held the course on monetary policy, keeping interest rates at 0.00% and the bank's asset-purchase scheme at EUR 60 billion/month. With no news in the rate statement, the markets focused on the ECB President Mario Draghi's press conference. Draghi sounded upbeat about the eurozone economy, noting there were signs of 'unquestionable improvement' in the eurozone economy. Draghi acknowledged that inflation remains stubbornly low, and said that it was a question of time until the stronger economic conditions pushed inflation to higher levels. As for monetary policy, Draghi said the bank had not set an exact time for revisiting any changes to the current accommodative policy, but added that the ECB would review policy in September. These comments did not seem to break any new ground, but were perceived as hawkish by the markets and boosted the euro on Thursday.

It was another rough week for President Trump. Early in the week, Trump's cherished flagship healthcare proposal, which aims to replace Obamacare, stalled in the Senate after two Republican senators said they would not support the bill. Trump has failed to pass any significant legislation so far in his term, and investors are becoming more skeptical as to whether Trump will have any more success with his tax reform and fiscal spending plans. With the Democrats forming a rock-solid wall of opposition, dissension among Republican lawmakers, many of whom are uneasy about Trump, could doom attempts by the White House to get bills through Congress. There was more bad news as Robert Mueller, the special counsel who is investigating alleged collusion between Trump and Russian officials during the US election, said he would review business transactions involving Trump as well as his associates. Trump has said that Mueller's scope is limited to Russia, so the stage could be set for a Nixon-type showdown between the president and the special counsel investigating wrongdoing by the president.

European equities plunged on Friday, amid EUR's strength and local disappointing earnings reports. The German DAX shed 203 points or 1.66%, to settle at 12,240.66, its lowest since late April, with all of the thirteen members closing in the red. Infineon Technologies was the worst performer, shedding 4.53%, followed by Volkswagen that lost 3.93%. The continued strength in the local currency is making local products less competitive worldwide, and further gains in the common currency will likely continue denting local investors' confidence. From a technical point of view, the daily chart shows that the index extended sharply below a bullish 100 DMA for the first time this year, also below a bearish 20 DMA and with technical indicators heading sharply lower within bearish territory. In the 4 hours chart, the index is below all of its moving averages, with the 20 SMA heading south almost vertically, and technical indicators bouncing, but still far below their mid-lines, and far from anticipating a recovery, as the RSI indicator remains at 28.

Support levels: 12,234 12,190 12,153

Resistance levels: 12,278 12,310 12,367

The FTSE 100 closed lower on Friday, down 34 points or 0.47%, at 7,452.91, anyway positive for the week, amid Pound weakness. On the last day of the week, the sour tone of its European counterparts weighed on the index, alongside with falling oil prices that set the energy sector lower. G4S led decliners with a 3.17% loss, followed by Micro Focus International that close down 2.53%. Shire was the best performer, adding 1.86%, followed by ConvaTec that gained 1.66%. From a technical point of view, the daily chart shows that the index held above its 20 and 100 DMAs, both lacking directional strength around 7,390, while technical indicators turned south within positive territory, not enough to confirm a bearish extension ahead. In the 4 hours chart, the index closed a few points above its 200 SMA while the 20 SMA heads higher below the current level, providing a dynamic support around 7,434 and as technical indicators head higher, also limiting chances of a steeper decline.

Support levels: 7,434 7,390 7,351

Resistance levels: 7,482 7,518 7,561