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While oil prices and Canadian Dollar took headlines, it's indeed the Euro that's the outstanding one in the early part of the week. The common currency resumed recent rally against dollar is back above 1.1 handle. Markets are getting more optimistic that subsiding political risks in the Eurozone clear up uncertainties over economic outlook. And recent solid economic data also pointing to better momentum in the recovery. If the developments continue, it's more likely that finally see the start of the end of ECB's stimulus after the current asset purchase program ends at the end of the year. But for sure, it's still too early to confirm anything, at least not before new staff economic projections from ECB to be published in June.

For now in short term, Euro is staying firm technically. EUR/USD took out 1.1020 to resume recent rise from 1.0339. Such rally is still seen as a correction, but there is room for more upside in near term for 1.1058 projection level. Outlook in Euro in crosses is actually more bullish. EUR/GBP's break of 0.8529 today confirms resumption of rise from 0.8312 and further rally should be seen to 0.8786/8851 resistance zone at least. EUR/JPY also resumed recent rise from 109.20 and should be target 126.09 resistance. EUR/AUD's is still kept below 1.4909 resistance but recent rise looks set to resume for 1.5094 resistance next.

BoJ Kuroda: Quite sure of enough tools for stimulus exit

BoJ Governor Haruhiko Kuroda said today that there "may be some challenging issues" regarding stimulus exit. But he is "quite sure" that the central bank has "enough tools" to manage it. Meanwhile, Kuroda also noted there will be lessons to be learned from Fed's normalization of policies. But he also emphasized that "the United States is the United States, Japan is Japan. At this stage, we're not exiting." There has been much concern over the size of BoJ's balance, in particular that it already took out 40% of JGBs in the markets. But Kuroda talked it down and said there are still 60% left and there won't be "any constraint" to the so called Yield Curve Control. Release from Japan, Tertiary industry index dropped -0.2% mom in March.

RBA Minutes: Reiterated concerns on housing and labor

The RBA minutes for the May meeting contained little news but reiterated policymakers' the importance of the property market and the labor market conditions in its policy decision. The stance to leave the monetary policy unchanged was obviously due to the perceived uncertain outlook in these two areas. As noted in the concluding statement in the minutes, 'the board continued to judge that developments in the labour and housing markets warranted careful monitoring'. More in RBA Reaffirmed Importance Of Housing And Labor Markets On Decision-Making, Defends The Trend Of Rising Part-Time Workers.

UK CPI a major focus today

Looking ahead, UK CPI is a major focus in European session. Headline CPI is expected to accelerate to 2.6% yoy in April. Last week's BoE meeting argues that the central bank will hold their hands before conclusion of Brexit negotiations. But we'd be eager to see how surging inflation reading would stretch MPC members' tolerance. UK will also release RPI, PPI and house price index. From Eurozone, GDP is expected to show 0.5% qoq growth in Q1. German ZEW economic sentiment and Eurozone trade balance will also be released. US will release housing starts and building permits, as well as industrial production later in the day.

EUR/JPY Daily Outlook

Daily Pivots: (S1) 124.04; (P) 124.46; (R1) 125.30; More...

EUR/JPY's rally resumed by taking out 124.53 and reaches as high as 125.15 so far. Intraday bias is back on the upside. Current rise from 114.84 is part of the medium term rebound from 109.03 and should target 126.09 resistance first. Decisive break there will extend the rise to 100% projection of 109.03 to 124.08 from 114.84 at 129.89. On the downside, break of 123.30 support is needed to indicate short term topping. Otherwise, outlook will stay bullish in case of retreat.

In the bigger picture, focus is back on 126.09 support turned resistance. Decisive break there will confirm completion of the down trend from 149.76. And in such case, rise from 109.20 is at the same degree and should target 141.04 resistance and above. Meanwhile, rejection from 126.09 and break of 114.84 will extend the fall from 149.76 through 109.20 low.

Economic Indicators Update

GBP/JPY – 144.85





GBP/JPY – Wave 5 as well as wave (III) has possibly ended at 116.85





As sterling has eased after rallying to 148.10 last week, suggesting consolidation below this level would be seen and pullback to 145.50-60 cannot be ruled out, however, reckon 144.65-75 would limit downside and bring another rise later, above said resistance at 148.10 would bring test of previous chart resistance at 148.55, however, break of this A leg top is needed to confirm early upmove from 120.50 low has resumed and extend gain to 149.00-10, then towards psychological resistance at 150.00 which is likely to hold on first testing. 


 


Our preferred count is that larger degree wave V with circle is unfolding from 251.12 with wave (I) 219.34, (II): 241.38 and wave (III) is subdivided into 1: 192.60, 2: 215.89 (23 Jul 2008) and wave 3 ended at 118.87 earlier in 2009. The correction from there to 162.60 is wave 4 which itself is a double three and is labeled as first a-b-c ended at 151.53, followed by wave x at 139.03, 2nd a ended at 162.60, 2nd b at 146.75 and 2nd c leg of wave 4 ended at 163.00. Therefore, the decline from 163.00 to 116.85 is now treated as wave 5 which also marked the end of larger degree wave (III), hence wave (IV) major correction has commenced for retracement of the wave (III) from 241.38 and upside target at 183.95-00 (50% Fibonacci retracement of the wave (II) from 241.38) had been met, a drop below 160.00 would suggest wave (IV) has ended at 195.85, bring decline in wave (V) for initial weakness to 130 (already met) and 120.


 


On the downside, whilst initial pullback to 145.50-60 is likely, reckon downside would be limited to 144.65-75 and bring another upmove later. Below 143.80 would defer and risk correction to 143.00 but downside should be limited to 142.30-35 and price should stay above previous resistance at 142.10-15, bring another rise later. Only a daily close below 142.10-15 would abort and signal top is formed instead, bring correction to 141.50, then 141.00 but price should stay above another previous resistance at 140.35 and bring another rise later. 



Recommendation: Buy sterling at 144.70 for 147.70 with stop below 143.70.


The long-term downtrend from 570.99 (29 Feb 1980) is labeled as an impulsive wave with III with circle ended at 129.77 (20 Apr 1995) and the corrective rebound to 251.12 (20 Jul 2007) is treated as wave IV with circle and the wave V with circle selloff from 251.12 has possibly ended at 116.80 (almost reached our indicated target at 116.00) and major correction has commenced from there and indicated upside target at 183.90-00 (50% Fibonacci retracement of 251.10-116.85) had been met, reckon upside would be limited to 199.80-90 (61.8% Fibonacci retracement) and bring wave (V) decline in later part of 2017.

EUR/JPY - 125.05

Recent wave: wave v of (C) ended at 94.12 and major correction in wave A has ended at 149.79

Trend: Near term up

Original strategy:

Sold at 124.00, stopped at 124.55

Position: - Short at 124.00
Target: -
Stop: - 124.55

New strategy :

Stand aside

Position: -
Target:  -
Stop:-

As the single currency has continued moving higher after breaking indicated resistance at 124.55, signaling recent upmove is still in progress and may extend further gain to 125.45-50, then 125.75-80, however, near term overbought condition should limit upside to 126.00-10 and price should falter below 126.50, risk from there has increased for a retreat to take place later.

In view of this, would not chase this rise here and would be prudent to buy euro on subsequent pullback. Below 124.55-60 would bring minor correction to 124.00-10 but downside would be limited to 123.60-65 and the single currency should stay well above support at 123.32, bring another rally later this week.

Our latest preferred count is that wave (ii) is ABC-X-ABC which ended at 123.33 and wave (iii) is unfolding with wave iii ended at 100.77, followed by wave iv at 111.57 and wave v as well as the wave (iii) has ended at 97.04, followed by wave (iv) at 111.43 and wave (v) has ended at 94.12 which is also the end of the larger degree v, this also implied the major wave (C) has also ended there, hence major correction has commenced from there with (A) leg unfolding in its lower degree wave c which has possibly ended at 145.69. Under this count, A-B-C wave (B) has commenced with A leg ended at 136.23, wave B at 143.79 and wave C has possibly ended at 149.79.

Our larger degree count is that the decline from 139.26 is wave (C) and is sub-divided into a diagonal triangle i-ii-iii-iv-v with wave i - 105.44, wave ii- 123.33, wave iii - 97.03, wave iv - 111.43, followed by the final wave v as well as the end of wave (C) at 94.12, this also mark the bottom of larger degree wave B. Under this count, major rise in wave C has commenced as an impulsive wave with minor wave III ended at 145.69, wave V is still in progress for further gain to 150.00. Having said that, this so-called wave V could well be the first leg of larger degree 5-waver wave C and this wave C should bring at least a retest of wave A top at 169.97 (July 2008).

AUD/USD – 0.7425

Recent wave: Wave 5 ended at 1.1081 and major correction has commenced for fall to 0.7000 and then towards 0.6500-10

Trend: Near term down

Original strategy :

Buy at 0.7300, Target: 0.7500, Stop: 0.7240

Position: -
Target:  -
Stop: -

New strategy :

Buy at 0.7370, Target: 0.7520, Stop: 0.7320

Position: -
Target:  -
Stop:-

Aussie’s rebound after falling to 0.7329 suggests a temporary low is possibly formed there and consolidation with mild upside bias is seen for further gain to 0.7470-75, then 0.7500-10 but break of latter level is needed to add credence to this view, bring subsequent rise towards resistance at 0.7556 which is likely to hold from here due to near term overbought condition.

In view of this, we are looking to buy aussie on dips as 0.7360-70 should limit downside. A break of said support at 0.7329 would abort and signal recent decline is still in progress for weakness to 0.7295-00 (76.4% retracement of 0.7158-0.7750), however, loss of downward momentum should prevent sharp fall below 0.7300 and reckon 0.7245-50 would remain intact, bring another rebound later. 

On the 4-hour chart, the move from 0.8066 is the wave 5 with i: 0.8860, ii: 0.8315, wave iii is an extended move ended at 1.0183, iv: 0.9706 and wave v has ended at 1.1081 (also the top of entire wave 5). The subsequent selloff is the major correction which is unfolding as ABC-X-ABC and 2nd A leg has ended at 0.8848, followed by a-b-c wave B which ended at 0.9758, hence, 2nd C wave is now in progress and indicated downside target at 0.7000 and 0.6950 had been met, so further fall to 0.6710-20 cannot be ruled out.

The latest monthly manufacturing activity report released by the New York Fed yesterday showed that the Empire State Manufacturing index slipped into negative territory, posting a reading of -1.0. The data missed expectations of 7.2 and indicated a third consecutive month of decline after data rose to a two-year high at 18.7 in February.

Both new orders and shipments fell while the labor market indicators pointed to only a modest increase during the month of May. The US dollar index fell through the day which saw the EURUSD maintain the bullish momentum from last Friday. The ICE futures, US dollar index fell 0.3% to close at 98.91.

Looking ahead, the economic calendar today will see the inflation figures from France and Italy while the UK will be releasing the monthly inflation figures which suggest that consumer prices might have accelerated at a pace of 2.6% in April. The inflation data will be followed by flash GDP numbers from the eurozone.

From the US building, permits and industrial production numbers will keep the markets busy later in the afternoon.

EURUSD intraday analysis

EURUSD (1.0986): EURUSD maintained its bullish gains yesterday with theprice now within reach of testing the 1.1000 resistance level. However, the current gains are still seen as a retracement unless we see a strong breakout above 1.1000 region. This will potentially set the stage for further gains to the upside. However, in the event of a reversal near 1.1000 resistance level, we could expect EURUSD to slip back towards the support that was established at 1.0863 - 1.0854 level. A break down below this region will then confirm a move towards 1.0750 - 1.0740 region.

USDJPY intraday analysis

USDJPY (113.51): The USDJPY managed to maintain some bullish momentum yesterday, but the daily chart shows a hidden bearish divergence that has formed. This indicates that USDJPY could be looking to slide towards 112.50 in the near term where support could be established ahead of a renewed bullish momentum. On the 4-hour chart, resistance is seen holding up at 114.00 - 113.78 region which was tested once again yesterday. Thiscould possibly signal a move towards the support level at 112.50.

XAUUSD intraday analysis

XAUUSD (1233.44): Gold prices attempted to push higher yesterday, but price managed to rise to a 7-day high at 1237.26 before pushing back lower. The failure to post any pullback towards 1221.47 regionis, however, indicative that the rally cannot be sustained further unless gold prices break out higher above 1235.00 and establish support at one of the higher levels. Resistance is seen coming in at 1250.00 which remains the upside target, while to the downside, the declines could be limited towards 1221.47 - 1221.00 region.

Weekly
    •    Last Candlesticks pattern: Long white candlestick
    •    Time of formation: 16 Jan 2017
    •    Trend bias: Down

Daily
    •    Last Candlesticks pattern: Long white candlestick
    •    Time of formation: 18 Apr 2017
    •    Trend bias: Near term up

GBP/USD – 1.2928

Cable’s firmness after recent rally adds credence to our view that the rise from 1.1986 low (Jan low) is still in progress and bullishness remains for this move to bring retracement of early downtrend, hence further gain to 1.3000 psychological resistance, then 1.3050-60 would be seen, however, loss of near term upward momentum should prevent sharp move beyond 1.3090-00 and reckon 1.3140-50 (38.2% Fibonacci retracement of 1.5018-1.1986) would hold on first testing, risk from there is seen for a retreat to take place later.



On the downside, whilst initial pullback to 1..2850-60 is likely, reckon downside would be limited to 1.2800-10 support at 1.2757 should hold, bring another rise later. Only a daily close below support at 1.2757 would suggest top is possibly formed, bring weakness to 1.2700-10 but a sustained breach below the Kijun-Sen (now at 1.2697) is needed to add credence to this view, bring correction to previous resistance at 1.2616, however, downside should be limited to 1.2575 and price should stay well above 1.2500, bring another rally later. 



Recommendation: Buy at 1.2770 for 1.3010 with stop below 1.2670. 




On the weekly chart, although cable has eased after faltering below psychological level at 1.3000 and initial consolidation would be seen, reckon downside would be limited to 1.2840-50 and 1.2757 support should hold, our bullish view remains for the erratic rise from this year’s low at 1.1986 to bring retracement of early decline, hence further gain to psychological resistance at 1.3000 and possibly towards 1.3090-00 would be seen, however, reckon upside would be limited to 1.3140-50 (38.2% Fibonacci retracement of 1.5018-1.1986) and price should falter well below 1.3200-10, bring retreat later. 



On the downside, although initial pullback to 1.2840-50 cannot be ruled out, reckon downside would be limited to 1.2770 and bring another rise. Below previous resistance at 1.2706 would defer and suggest top is possibly formed, risk weakness to 1.2640-50, however, only a drop below another previous resistance at 1.2616 would add credence to this view, bring further fall to 1.2550-60 but reckon support at 1.2515 would hold, bring another rise later. Only a drop below 1.2500 would abort and signal top is formed instead, then test of the Kijun-Sen (now at 1.2489) would follow but support at 1.2365 should remain intact. 


Sunrise Market Commentary

• Rates: Waiting game continues
  Today's eco calendar contains several eco data, but we don't think they will impact trading. We expect sideways action and don't think that Trump's latest scandal will have a lasting impact on risk sentiment. If oil prices extend their rally, they could inflict some losses on core bonds. Speeches by ECB governors are wildcards in the run-up to the June policy meeting.
• Currencies: EUR/USD again nearing the 1.10 barrier
  The euro profited most yesterday from recent disappointing US data. EUR/USD is again nearing the recent highs. Today's US eco data might be constructive, but it's not sure they will be strong enough to change fortunes in favour of the dollar. EUR/GBP is also near a first technical resistance at 0.8509/31. Today's UK CPI data might decide on a break.

The Sunrise Headlines

• Wall Street began the week on the front foot as a rally in oil prices propelled energy stocks higher. Both the S&P 500 and Nasdaq set new intraday and closing highs after gaining 0.5%. Overnight, Asian stock markets trade mixed.
• US President Trump shared sensitive intelligence obtained from a close US ally with Russia's foreign minister and ambassador, according to US officials, jeopardizing critical intelligence-sharing agreements in the fight against IS.
• Angela Merkel and Emmanuel Macron promised to work together to deepen EU integration and reinforce the eurozone as the new French president visited the German chancellor in Berlin the day after his inauguration.
• Australia's central bank was confident core inflation would pick up by early 2018, but worries about a subdued labour market amid soaring household debt forced it to stand pat on rates, Minutes of the May meeting showed.
• Dutch coalition talks between Liberals, Christian Democrats, D66 and the Greens to form a new government collapsed over disagreements on how to tackle immigration, Edith Schippers, who led the negotiations, said.
• The Czech crown firmed to its strongest level against the euro, below EUR/CZK 26.50, since the central bank scrapped an intervention regime keeping it weak EUR/CZK > 27.00) on April 6.
• Today's eco calendar is busy with UK CPI, German ZEW, the second reading of EMU Q1 GDP, US housing starts, building permits and industrial production. ECB Nowotny and Coeuré are scheduled to speak.

Currencies: EUR/USD Again Nearing The 1.10 Barrier

EUR/USD returns to 1.10 area

On Monday, the euro remained well bid in a technically driven session. The dollar suffered further follow-through selling after Friday's weak US data. A weak US manufacturing index gave EUR/USD some additional fuel. Ongoing speculation on ECB QE tapering was also mention as supporting the euro. EUR/USD traded with a positive intraday bias and settled in the high 1.09 area later in the US. The pair closed the session at 1.0975. The dollar performed better against the yen as US equity sentiment remained constructive, with both the Nasdaq and the S&P touching all time record highs. USD/JPY finished the session at 113.79 (from 113.38).

Overnight, Asian equities took a strong start after the WS record race, but the momentum dwindled as trading preceded. The Press headlines of US President Trump revealing classified information may have caused some investors caution. USD/JPY retreated off this morning's highs in the 113.80 area and trades currently in the 113.50 area. By default EUR/USD buying persists the pair is changing hands with reach of the 1.10 barrier.

Today, the German ZEW economic sentiment is expected to improve (expectations). As both equities and the economy continue to do well, a rise is likely. EMU Q1 GDP is expected to stay unrevised. US housing starts are expected to have rebounded in April keeping them near cycle highs. Permits did better in March and are expected to have stabilized in April (also near highs). Industrial production did fine in March (+0.5% M/M) but mainly due to utility output. For April, we expect production data to be strong. So, we expect good US eco data, but they are probably no (positive) game-changer for the dollar. Negative surprises may get more attention. ECB Coeuré is a key member of the ECB executive board. He recently said as first ECB member that risks were balanced and suggested that the forward guidance might need to be changed some time in the future. While he speaks after European closures, markets will closely listen to him.

Short term trading assessment

The USD/JPY rebound ran into resistance last Thursday when equities stabilized and on Friday after soft US inflation and retail sales. A correction was upcoming after a 6 big figure gain from mid-April to mid-May. Some more corrective losses shouldn't surprise, but as long as USD/JPY 112.20 holds, the outlook for the dollar versus yen remains positive. A buy on dips of USD/JPY near these levels looks appropriate. The Fed will continue to tighten policy and the stronger labour market should ultimately lead to higher wages and inflation. Last week, it looked that EUR/USD could revisit the 1.0821/1.0778 support (gap). However, Friday's data poured some cold water on the dollar's short term comeback. The US and EMU eco calendars are thin this week, but the euro clearly gets the advantage of the doubt. EUR/USD is nearing the top of the 1.0821/1.0778 to 1.1023 range. For now, we don't preposition for a sustained break higher, but the dollar remains most vulnerable to negative surprises, from whatever source.

From a technical point of view, EUR/USD extensively tested the topside of the MT range (1.0874/1.0906 area) late March. The pair finally broke above the 1.09/1.0950 resistance, but the break wasn't confirmed. A sustained break higher would improve the ST picture. Next resistance stands at 1.1129 (62% retracement) and at 1.1366 (correction top). A decline below 1.0821 would suggest that the dollar is regaining traction against the euro.

EUR/USD again nearing the recent highs as euro remains on poleposition

EUR/GBP

EUR/GBP resistance at 0.8509/31 under test

EUR/GBP trading was sentiment-driven on Monday .Sterling tried to regain part of Friday's losses in Asian and early European trading, but the EUR/GBP decline stalled at 0.8458. Later, the pair followed EUR/USD higher and regained the 0.85 handle, testing first resistance (0.8509/31). Cable initially rebounded to the 1.2940 area, probably on USD softness, but couldn't maintain the intraday gains. EUR/GBP closed the session at 0.8510 (from 0.8476). Cable finished the day 1.2896, little changed from Friday.

Today, the UK April Price data, including the CPI will be published. Headline CPI is expected to rise 0.4% M/M and 2.6% Y/Y (from 2.3%). The core CPI is also expected substantially higher at 1.8% Y/Y to 2.3% Y/Y. The rise in UK inflation took a breather in March but this might have been due to technical factors. PPI inflation is expected to slow after a strong run over the previous months. A further rise in April is likely. However, after last week's moderate/balanced BoE approach, we think that a substantial overshoot is needed for the inflation data to support sterling. Softer data might reinforce the market feeling that a BoE interest rate is still very far away. In a day-to-day, perspective, we doubt that sterling will get big support from today's data. At the same time, the euro remains in good shape. So a further test of the 0.8509/31 resistance neckline is likely.

Recently, EUR/GBP was locked in a ST sideways range (0.83/0.85) after a substantial decline in March/April. The pair developed a bottoming out pattern with 0.84/0.8330 as a solid bottom. A breach of 0.8509/31 (previous ST tops) would improve the technical picture. We slightly prefer a EUR/GBP buy-on-dips approach. Longer term, Brexit-complications remain potentially negative for Stering

EUR/GBP: first resistance at 0.8509/31 is under test as euro is better bid across the board

Download entire Sunrise Market Commentary

Weekly
    •    Last Candlesticks pattern: Shooting star
    •    Time of formation: 7 Mar 2017
    •    Trend bias: Sideways

Daily
    •    Last Candlesticks pattern: Morning star
    •    Time of formation: 9 May 2017
    •    Trend bias: Near term up

USD/CHF – 0.9944

Although the greenback rose to as high as 1.0100 last week, the subsequent retreat after faltering below previous resistance at 1.0108 suggests further consolidation would be seen, however, reckon downside would be limited to 0.9900-05 and bring another rebound later, above 1.0045-50 would bring retest of 1.0100-08 resistance but break there is needed to retain bullishness and signal another rise from 0.9813 low is underway for headway to 1.0150 and possibly test of resistance at 1.0171 which is likely to hold from here.

On the downside, expect pullback to be limited to 0.9900-05 and bring another rebound later. Below said support at 0.9859 would abort and risk retest of previous support at 0.9813 but only a drop below this support would indicate the decline from 1.0344 top has resumed instead and extend further fall to 0.9735-40 (76.4% retracement of 0.9550-1.0344) and later towards 0.9700, however, near term oversold condition should limit downside to 0.9650-60 and reckon 0.9600 would hold, bring rebound later.

Recommendation: Hold long entered at 0.9970 for 1.0170 with stop below 0.9870.

On the weekly chart, failure to extend last week’s rebound and the subsequent retreat after faltering below previous resistance at 1.0108 suggest further consolidation would be seen and weakness to 0.9900 cannot be ruled out, however, as long as support at 0.9859 holds, prospect of another rebound remains, above 1.0045-50 would bring another rise to 1.0100-08 resistance area but break there is needed to retain bullishness and signal another leg of rise from 0.9813 low is underway for test of previous resistance at 1.0171. Looking ahead, a weekly close above there is needed to signal the fall from 1.0344 (Dec high) has ended, bring further rise to 1.0248, a sustained breach above this key level would signal early upmove has possibly resumed, bring test of 1.0335-44 resistance area, above there would provide confirmation and headway to 1.0400-10 and later 1.0500 would follow.

On the downside, although initial marginal weakness from here cannot be ruled out, reckon downside would be limited to 0.9900 and bring another rebound later. Below said support at 0.9859 would bring test of strong support at 0.9813 but only break of this level would abort and signal the erratic fall from 1.0344 top is still in progress, bring further decline for retracement of early upmove to 0.9735-40, then 0.9700 but reckon downside would be limited to 0.9640-50 and price should stay well above support at 0.9550.

USD/CHF - 0.9943

Most recent candlesticks pattern : N/A

Trend                                    : Near term down

Tenkan-Sen level                  : 0.9953

Kijun-Sen level                    : 0.9980

Ichimoku cloud top                 : 1.0044

Ichimoku cloud bottom              : 1.0023

Original strategy :

Sell at 1.0035, Target: 0.9935, Stop: 1.0070

Position : -

Target :  -

Stop : -

New strategy  :

Sell at 1.0020, Target: 0.9920, Stop: 1.0055

Position : -

Target :  -

Stop : -

As the greenback has remained under pressure after Friday’s selloff, suggesting the fall from 1.0100 top is still in progress and further weakness to 0.9930 and possibly towards previous resistance at 0.9903 would be seen, however, near term oversold condition should prevent sharp fall below 0.9875-80 and price should stay above support at 0.9859, bring rebound later.

In view of this, would be prudent to sell dollar on recovery as 1.0020 should limit upside. Above previous support at 1.0056 would defer and risk a stronger rebound to 1.0080 but price should falter below resistance at 1.0100-08, bring retreat later.

EUR/USD

Current level - 10995

The uptrend here is intact, heading for a test of 1.1022 peak. A break through the latter is likely and it will challenge 1.1080 zone. Initial intraday support lies at 1.0950.

Profit-taking affects gold curbing silver and platinum

USD/JPY

Current level - 113.44

The corrective pattern above 113.00 signals a bearish outlook and I favor a break through the mentioned support to initiate a slide towards 112.00 area. Initial intraday resistance lies at 113.90.

GBP/USD

Current level - 1.2912

Still no trend dynamics here, so the intraday is absolutely neutral. Key support lies at 1.2830.