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Near-term studies are weakening and risk fresh downside, as the price is probing below 0.7650, where pullback from 0.7730 found footstep.

Upside rejection at 0.7730 that confirmed false break above larger 0.7600/0.7700 congestion, continues to weigh, as daily studies indicate pullback.

Pivots at 0.7630/00 (20 SMA / congestion floor) are eyed for stronger reversal signal.

Past two days highs at 0.7688 mark initial resistance, ahead of 0.7700 and 16 Feb high at 0.7730 (the upper pivot).

Res: 0.7688, 0.7700, 0.7730, 0.7755
Sup: 0.7630, 0.7600, 0.7575, 0.7504

The pair extends recovery from 112.60 (low of three-day fall from 114.94) and cracked pivot at 113.59 (daily Kijun-sen) but without clear break for now.

Last week's strong upside rejection and subsequent fall continue to weigh on near-term action, as daily studies remain bearishly aligned. Current rally is still seen as correction that may extend above Kijun-sen pivot, before bears take control again.

Renewed downside attempts need to clear 112.60 support to open way towards psychological 112.00 level and key near-term support at 111.60.

Upper trigger lies at 114.05 (Fibo 61.8% of 114.94/112.60) and only sustained break here would neutralize bears for renewed attempts towards 115.00 zone.

Res: 113.59, 113.77, 114.05, 114.39
Sup: 113.33, 113.00, 112.60, 112.37

Cable is trading within near-term triangle, entrenched between daily 10 and 100SMA's that mark key near-term levels. The upside is limited by descending 10SMA (currently at 1.2474), while 100 SMA marks the lower pivot (currently at 1.2404). Break of either side is needed to define fresh near-term direction, as daily studies are mixed. Extension below 100SMA would face immediate support at 1.2379 (top of descending daily cloud that so far contained downside attempts), break of which would trigger fresh weakness. Conversely, lift above 10SMA (also upper triangle boundary) would shift near-term focus higher and expose 20SMA (1.2509), which guards upper pivots at 1.2550/80.

Res: 1.2474, 1.2509, 1.2550, 1.2580
Sup: 1.2404, 1.2379, 1.2345, 1.2300

The Euro eventually broke below 55SMA support at 1.0600 zone that held downside attempts in past two days.

Fresh weakness from yesterday's upside rejection at 1.0631 where upside action was capped by falling 10SMA, also probes below double-Fibonacci support at 1.0580 (50% of 1.0339/1.0827 and 61.8% of 1.0520/1.0678).

Near-term focus is at 1.0557 (Fibo 76.4% of 1.0520/1.0678 upleg) which guards strong supports at 1.0520 zone (daily cloud base/15 Feb low/Fibo 61.8% of 1.0339/1.0827).

Daily studies turned into full bearish setup and support scenario.

Broken 55SMA offers immediate resistance (currently at 1.0598), followed by session high/5SMA at 1.0613 and falling 10 SMA (currently at 1.0622) that continues to weigh on near-term action and is expected to cap extended corrective upticks.

Res: 1.0598, 1.0613, 1.0630, 1.0678
Sup: 1.0557, 1.0520, 1.0500, 1.0454

'Hidden under the surface of European bond markets, traders are placing bets that will pay out if the risks in the euro zone severely escalate.' - Stephen Spratt, Bloomberg

Pair's Outlook

The common European currency depreciated on Tuesday morning against the US Dollar, as the currency exchange rate passed the combined support of the weekly PP at 1.0604 and the 55-day SMA at 1.0597. Due to this factor the currency pair is set to continue the fall, as the closest support level to the pair is at 1.0529, where the weekly S1 is located at. Moreover, as the weekly S1 is a lone support level, it is highly possible that it will be also easily passed in the upcoming trading sessions. The closest support below the weekly S1 is the lower Bollinger band, which was near the 1.05 mark on Tuesday.

Traders' Sentiment

SWFX traders are bullish on the pair, as 52% of open positions are long on Tuesday. Meanwhile, 55% of trader set up orders are to sell the Euro.

'GBPUSD is sending mixed signals. The pair briefly dipped under its 50-day average near $1.2410 testing $1.2390 before bouncing back toward $1.2430. While this looks like a successful retest, RSI breaking under 50 suggests momentum turning downward.' – CMC Markets (based on PoundSterlingLive)

Pair's Outlook

The GBP/USD pair erased most of Friday's losses yesterday, successfully climbing over the 1.2450 level, thus, breaching the immediate resistance area. Now the British currency is being supported by a strong demand area around the 1.24 major level, with the weekly PP just being a minor nuisance located at 1.2449. Technically, the Cable should remain above the 1.24 mark today and pave its way towards retaking the 1.25 handle. However, technical indicators are still unable to confirm the possibility of the positive outcome, leaving the door open for another leg down.

Traders' Sentiment

Bullish traders' sentiment remains unchanged at 59% for the third time in a row. At the same time, the share of sell orders inched slightly higher, namely from 55 to 58%.

'Technically, it's important for the dollar to get back to 115, which is a nice figure to target, but I think a lot of investors are probably playing from the long position and it's difficult to get a new wave of buyers to give it that extra kick.' – State Street Global Markets (based on Reuters)

Pair's Outlook

The overall picture did not change on Monday, as the USD/JPY pair keeps consolidating between 111.50 and 115.00. The Buck has sufficient space to edge higher again, even though the 20-day SMA and the weekly PP form resistance quite close to today's opening price. A failure to climb over this resistance cluster is likely to result in a relatively serious decline, with the tough demand area circa 111.70 limiting any possible losses. On the other hand, a successful breach of the nearest resistance would allow the 115.00 area to be retested again, making another step towards reaching the two-year down-trend.

Traders' Sentiment

There are no 56% of traders who are bulls, compared to 57% on Monday. The share of purchase orders declined dramatically in the last 24 hours, having fallen from 59 to 38%.

'People are awaiting direction from the minutes of the last FOMC (Federal Open Market Committee) meeting.' – Hareesh V, Geofin Comtrade Ltd (based on Reuters)

Pair's Outlook

The yellow metal lost value during the early hours of Tuesday's trading session, as the bullion was in a retreat after failing to break the resistance put up by the monthly R1 at 1,237.68 during Monday's trading session. However, if compared with previous price levels, the commodity price has not changed much for the past four trading sessions. The reason for that is that market participants are expecting clues regarding US monetary policy. In the meantime, from a technical perspective the yellow metal is set to remain flat until it encounters the uptrend line in the next two trading sessions.

Traders' Sentiment

SWFX traders have not changed their opinion, as 54% of open positions remain long, and 61% of trader set up orders remain set to buy the bullion.

"Ontario recorded the largest increase of wholesale sales in dollar terms among the provinces and territories, and the largest portion of the increase came from the motor vehicle and parts subsector." - Statistics Canada

The value of Canadian wholesale trade advanced more than expected in December, official figures revealed on Monday. According to Statistics Canada, the country's wholesale trade rose 0.7% in the reported month, continuing its uptrend for the third consecutive month, whereas market analysts anticipated an increase of 0.4%. In the meantime, the November gain of 0.2% was revised down to 0.1%. In volume terms, sales gained 0.9% in December, which is expected to prop up economic growth for the month. In the report, Statistics Canada said sales had appreciated in six out of seven sectors. Comparing with 2015 levels, there was a 3.1% gain in sales in 2016, the seventh consecutive yearly surge. The largest annual gain of 4.6% came in the machinery sector, suggesting a solid investment trend. The report also showed both household goods and food sectors rose 0.9% on a monthly basis, while building suppliers posted a 1.4% increase for the month. Nevertheless, there was a 2.1% decline registered in the motor vehicle sector, which is set to threaten growth in manufacturing sector's output. In addition, wholesale inventories rose 1.1% for the fifth straight month in December.

On the updated chart of USDJPY, we can see a nice and strong bullish turn taking place from around the 111.60 level, where we labeled end of a complex correction. As such, recent recovery gives us an indication for a completed double zig-zag correction and a suggestion that higher levels will now follow while market stays above 111.60. At the moment we see price trading up from black wave 2, that seems to have found a base at the 61.8 Fibonacci ratio.

USDJPY, 4H