EUR/USD extends retreat from 1.1100 on PMIs, Fed eyed
The EUR/USD pair ran into fresh offers at 1.1100 and now pushes further below the last, following the release of a series of mixed manufacturing PMI reports from the Euroland.Currently, EUR/USD trades +0.25% higher at 1.1082, having faced rejection just a thread-line short of 1.11 handle. The main currency pair paused its upward rally in the European session, as the bulls faced exhaustion and remained unimpressed by dismal Eurozone manufacturing PMI readings.Moreover, a fresh bout of buying interest seen behind the greenback across the board, in response to easing risk-off moods, weighed down on the sentiment around the major.With the Euro area PMIs out of the way, focus solely remains on the US ADP employment change report and FOMC decision due later in the day ahead.The Fed is widely expected to keep the interest rates unchanged today, although the bank?s language will be closely eyed in order to gauge the chances for a Dec Fed rate hike.In terms of technicals, the pair finds the immediate resistance 1.1100 (key resistance). A break beyond the last, doors will open for a test of 1.1114 (50-DMA) and from there to 1.1144 (Oct 11 high). On the flip side, the immediate support is placed at 1.1016 (5-DMA) below which 1.1000 (round figure) and 1.0968 (20-DMA) could be tested.

GBP/USD drops back towards 1.2260 ahead of UK PMI
The GBP/USD pair trims gains, although remains well bid in Europe, as the US dollar comes under fresh selling pressure in wake of uncertainty and anxiety ahead of the FOMC decision and US elections.The cable is seen reversing a spike to daily highs just an hour before the UK construction PMI release, as investors look to lock-in some gains.Moreover, any recovery attempt remains capped on the back of persisting US election-related jitters, which weigh negatively on the demand for higher-yielding currencies such as GBP.Following the release of UK construction PMI report, the US ADP jobs data and Fed verdict will take center-stage in the American session.At 1.2180, the pair finds immediate resistances placed at 1.2283 (daily R1), 1.2300 (Oct 20 high) and 1.2327 (Oct 18 high). While supports are lined up at 1.2204 (daily S1) and 1.2173 (Oct 18 low) and below that at 1.2134 (Oct 17 low).

USD/CHF could drop to 0.9640 Commerzbank
According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair?s leg lower could well visit the 0.9640 area and below.?USD/CHF?s reversal from the psychological resistance at 1.00 has triggered quite a sell off and this has eroded the 55 and 200 day ma at 0.9780/82 and the 50% retracement at 0.9768?.?The sell off has reached the 3 month support line at .9724. This and the 61.8% retracement at /9714 should hold the initial test, Can losses extend back to the 0.9640 29th September low? ? yes this is possible and even the /9538 August low, but the bottom of the range is regarded as the 200 week ma at .9449?.?Rallies will struggle .9820/75 and will need to regain this area for another shot at 1.00?.

USD/CAD hovering over 1.3400 ahead of data
The Canadian dollar has resumed its downside vs. its American neighbour on Wednesday, now sending USD/CAD to the 1.3400 neighbourhood.The pair has recovered from yesterday drop and has now regained the 1.3400 handle despite the greenback is extending its selling mood on US political effervescence.Adding to CAD weakness, crude oil prices remain on the defensive, dragging the West Texas Intermediate to the vicinity of $46.30 per barrel. The downside pressure has intensified around WTI after the API reported on Tuesday the biggest build in crude supplies since March, up by more than 9 million barrels.Later in the session, US ADP report is due followed by the weekly report on crude inventories by the EIA and the FOMC meeting. On the Canadian side, Senior Deputy Governor C.Wilkins will give panel remarks on ?Innovative Oversight in the Midst of Disruption.?As of writing the pair is up 0.04% at 1.3394 and a breakout of 1.3433 (high Oct.28) would open the door to 1.3575 (50% Fibo of the 2016 drop) and finally 1.3839 (61.8% Fibo of the 2016 drop). On the downside, the immediate support lines up at 1.3273 (20-day sma) ahead of 1.3095 (200-day sma) and then 1.3002 (low Oct.19).


EUR/GBP could test 0.92 in 6-month Danske Bank
Senior Analyst at Danske Bank Morten Helt sees the European cross picking up pace to the 0.9200 area in the medium term.?EUR/GBP bounced around 0.8% yesterday from 0.8960 to 0.9040, probably supported by the news that Mark Carney has extended his term to the end of June 2019 and under the assumption that the BoE under Carney?s continued leadership will continue its easing bias, standing ready to support the economy through further easing if needed despite inflation being expected to increase above the 2% target over the coming year?.?In our view, it is too early to rule out that the economy could slow due to the higher degree of uncertainty, and we still see more than a 50/50 chance of a rate cut at the next big meeting in February, but it depends on whether the economy slows in Q4?.?In respect of EUR/GBP, we still see more upside potential on a three to six month horizon. We target 0.92 in 6M but stress that risks are skewed towards the cross overshooting our targets. In the very short term, risks are more balanced as Brexit risks has been repriced and we expect EUR/GBP to trade mostly sideways in the 0.89-0.91 range?.

US Dollar plummets to 97.40 ahead of ADP, FOMC
The leg lower in the greenback seems everything but abated so far today, with the US Dollar Index now testing fresh 3-week lows in the 97.40 area.After climbing to 9-month tops just above the 99.00 handle last week, the index has sparked a violent correction lower to the current 97.40 region, all supported by heightened political risks in the US scenario in light of the imminent elections on November 8.The recent USD rally was sustained by increasing expectations of a Fed?s rate hike by end 2016, with the probability of such an event just below 70% according to the CME Group?s FedWatch tool based on Fed Funds future prices.Later in the session, the ADP employment report is seen adding 165K jobs during last month, while the FOMC meeting is expected to deliver a hawkish tone, strengthening the case for higher rates by year-end.The index is losing 0.24% at 97.46 facing the next support at 96.31 (55-day sma) followed by 95.83 (200-day sma) and finally 95.53 (6-month support line). On the upside, a breakout of 99.09 (high Oct.25) would aim for 99.95 (high Jan.21) and then 100.60 (high Dec.3).


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