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Daily Pivots: (S1) 138.99; (P) 139.64; (R1) 140.03; More...

GBP/JPY dips mildly today but it's, after all, bounded in range of 138.53/142.79. Intraday bias remains neutral at this point. We're treating price actions from 148.42 as a corrective pattern. Break of 138.53 support will bring deeper decline to 136.44 support and possibly below. However, we'd expect strong support at 50% retracement of 122.36 to 148.42 at 135.39 to bring rebound. On the upside, above 142.79 will turn bias back to the upside for 144.77 and above.

In the bigger picture, price actions from 122.36 medium term bottom are still seen as a corrective pattern. Main focus is on 38.2% retracement of 195.86 to 122.36 at 150.42. Rejection from there will turn the cross into medium term sideway pattern with a test on 122.36 low next. Though, sustained break of 150.42 will extend the rebound towards 61.8% retracement at 167.78.

Daily Pivots: (S1) 120.18; (P) 120.66; (R1) 120.97; More...

A temporary top is in place at 121.18 in EUR/JPY and intraday bias is turned neutral first. At this point, we're still favoring the case that corrective fall from 124.08 has completed at 118.23 already, after defending 118.45 cluster support (38.2% retracement of 109.20 to 124.08 at 118.39). Decisive break of 121.32 resistance should confirm this case and target 124.08 high next. However, break of 119.45 support should invalidate this bullish view and would likely extend the fall from 124.08 through 118.23.

In the bigger picture, price actions from 109.20 medium term bottom are seen as part of a medium term corrective pattern from 149.76. Strong rebound from 118.45 resistance turned support suggests that it's still in progress. Break of 124.08 will target 126.09 key resistance level. We'd be cautious on strong resistance there to limit upside. However, sustained break there will be a strong sign of medium term momentum and could target 141.04 resistance next.

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'Despite the sell-off, traders say they prefer to be long USD on a selective basis, and will reset positions at better levels.' - Dennis Pettit, Bloomberg

Pair's Outlook

The common European currency trades against the US Dollar just as forecasted yesterday, as the currency exchange rate fell down to the weekly PP, which is located at the 1.0582 level. There the pair found support on Tuesday morning and began a rebound. The rate might surge up to the monthly PP, which is located at 1.0633. However, before that the currency pair faces the combined resistance of the 20 and 55-day SMAs, which are located respectively at 1.0598 and 1.0603 levels. On the other hand traders might watch for another attempt of the Buck to surge and pass the weekly PP.

Traders' Sentiment

SWFX traders remain neutral bullish on the pair, as 51% of open positions are long on Tuesday. Meanwhile, 58% of trader open positions are to sell the Euro.

'The old floor at $1.24 now becomes important resistance, though, before it, we suspect a recovery from the current stretched condition will be more limited.' – BBH (based on FXStreet)

Pair's Outlook

The bearish momentum prevailed on Monday, causing the GBP/USD pair to fall under the monthly S1, thus, opening the door for new lows. In case bears continue pushing the British Pound further down, the lower Bollinger band, which is the closest support today, is expected to be ignored. As a result, the Cable risks piercing the 1.22 threshold, with attention then turning to the second significant support, namely the monthly S2 at 1.2119. However, the 1.2150 mark should also be considered as an interim demand level, as it showed some potential previously. Meanwhile, technical indicators keep giving mixed signals, unable to provide any clear sense of direction.

Traders' Sentiment

There are 62% of open long positions today (previously 61%), whereas 60% of 60% of all pending orders are to purchase the Sterling.

Daily Pivots: (S1) 1.3916; (P) 1.3965; (R1) 1.4007; More...

EUR/AUD's pull back indicates temporary topping at 1.4014. Intraday bias is turned neutral for consolidation. We're holding on to the view that a short term bottom was formed at 1.3624, on bullish convergence condition in 4 hour MACD. And, the cross could have defended 1.3671 key support level successfully and is staging trend reversal. Above 1.4014 will target 1.4289 resistance first. Break will affirm this case and target 1.4721 resistance for confirmation. On the downside, below 1.3835 minor support will dampen this bullish view and turn bias back to the downside for 1.3624 low.

In the bigger picture, price actions from 1.6587 medium term top are viewed as a corrective pattern. We'd expect strong support from 1.3671 key level to contain downside and bring rebound. Up trend from 1.1602 should not be finished and will resume later. Break of 1.4721 resistance will indicate completion of such correction and turn outlook bullish for retesting 1.6587 high. However, sustained break of 1.3671 will invalidate our bullish view and would turn focus back to 1.1602 long term bottom.

'The dollar is not likely to gain further against the yen, with an expected range around 111 to 115 yen during March.' – BBH (based on Reuters)

Pair's Outlook

The USD/JPY currency pair remained almost completely flat on Monday, unable to reclaim the 114.00 major level. The pair remains on the back foot, with the cluster around 113.30 representing the lower boundary of today's intraday trade and the cluster circa 114.60—the upper border. The Buck is expected to remain within this trading range, but with risks skewed to the downside, as the exchange rate recently jumped away from the ascending channel's upper boundary. Ultimately, a retest of the 112.30/00 area is expected, which would reconfirm the channel's support line. Technical studies, however, are unable to confirm either the positive or the negative scenario.

Traders' Sentiment

Today 61% of traders are long the Buck (previously 59%), while the share of buy orders slid from 56 to 54% during the last 24 hours.

'We expect the precious metal to have a bumpy ride the rest of the week as we await further economic indicators from the U.S.' – Mihir Kapadia, Sun Global Investments (based on Reuters)

Pair's Outlook

During the early hours of Tuesday's trading session the yellow metal had paused the decline, which occurred during Monday's trading. The bullion stopped just below the 1,225 level and attempted to regain some of its value. However the attempt failed, and the commodity price still remains positioned to fall to the 1,219.20 level, where the 38.20% Fibonacci retracement level is located at. The Fibonacci retracement level is also supported by the weekly S1, which is located at 1,216.60 level.

Traders' Sentiment

For the third consecutive trading session SWFX traders remain 54% long regarding the bullion. In addition, 58% of trader set up orders are to buy the metal.

Daily Pivots: (S1) 0.8623; (P) 0.8646; (R1) 0.8668; More...

EUR/GBP's rebound form 0.8402 is still in progress today and reaches as high as 0.8676 so far. As noted before, rise from 0.8402 is viewed as the third leg of the corrective price actions from 0.8303. EUR/GBP should be targeting 0.8851 resistance and above. However, whole price actions from 0.8303 are viewed as the second leg of the correction from 0.9304. Hence, we'd expect strong resistance from 100% projection of 0.8303 to 0.8851 from 0.8402 at 0.8950 to limit upside. On the downside, below 0.8546 minor support will turn bias back to the downside for 0.8402 support.

In the bigger picture, price actions from 0.9304 are viewed as a medium term corrective pattern. Deeper fall cannot be ruled out yet. But we'd expect strong support from 0.8116 cluster support (50% retracement of 0.6935 to 0.9304 at 0.8120) to contain downside. Overall, the corrective pattern would take some time to complete before long term up trend resumes at a later stage. Break of 0.9304 will pave the way to 0.9799 (2008 high).

EUR/USD

Current level - 10584

Yesterday's failure at 1.0630 resistance area signals a negative outlook, for a break through 1.0570 support, towards 1.0490 lows.

Profit-taking affects gold curbing silver and platinum

USD/JPY

Current level - 113.89

The rebound above 113.50 low is corrective in nature, thus preceding another slide towards 113.37, en route to 112.80 support area.

GBP/USD

Current level - 1.2227

The overall bias remains negative, for a slide towards 1.2116 static support. Initial resistance lies at 1.2325.

Daily Pivots: (S1) 1.0687; (P) 1.0704; (R1) 1.0724; More...

A short term bottom is likely in place at 1.0629 on bullish convergence condition in 4 hour MACD. Intraday bias stays on the upside for 1.0749 resistance next. Also, current development is raising the change of larger trend reversal after defending 1.0620 key support level. Decisive break of 1.0749 should affirm this bullish case and target 1.0897. On the downside, though, below 1.0683 minor support will turn bias back to the downside for 1.0629 instead.

In the bigger picture, the decline from 1.1198 is seen as a corrective move. There is no confirmation of completion yet. Sustained trading below 38.2% retracement of 0.9771 to 1.1198 at 1.0653 will target 50% retracement at 1.0485. However, strong rebound from 1.0620 and break of 1.0897 resistance will indicate trend reversal and turn outlook bullish.