EUR/USD slips into negative territory
For the second consecutive session, the EUR/USD pair faced rejection near 1.0770 region and has now reversed all of its early gain to 7-week tops. Currently trading around 1.0720-25 region, with mild negative bias, the pair ran through fresh offers during early NA session in wake of a modest greenback rebound, with the key US Dollar Index managing to reverse all of its losses seven week low to sub-100.00 mark. In absence of any market moving economic releases, the greenback's latest leg of recovery move could be attributed to a fresh wave of up-move in the US treasury bond yields.However, the near-term market sentiment around the buck remains bearish amid growing skepticism over Trump economic policies and possible jawboning to stem a stronger dollar from Trump administration.From a technical point of view, the pair presents a limited upward momentum, currently extending a few pips above its 20 SMA, the Momentum indicator still flat around its 100 level and the RSI heading modestly higher from their mid-line, but below previous weekly highs. Still, the pair needs to advance beyond 1.0770, recent highs and where the 100 DMA stands, to confirm another leg higher, towards the 1.0800/40 region."She further writes, "Should the dollar regain its charm, as worldwide stocks are doing, the pair needs to break below 1.0710, to turn short term bearish, with the next intraday supports at 1.0660 and 1.0620."

GBP/USD hits fresh 1-month highs above 1.2600
The pound gained momentum in the market during the last hours and climbed across the board. GBP/USD broke above 1.2600 and reached 1.2616, the strongest level since December 14. The pair then pulled back toward the 1.2600 area, where is currently trading, up 0.80% for the day. Cable is rising for the fourth time out of the last five trading days. Today the British government announced that on Thursday will present the legislation regarding the Article 50, that the Parliament will have to approve (after yesterday?s Supreme Court ruling). If it passes the Parliament, the government would be able to invoke Article 50, triggering Brexit formal negotiations, that is expected to take 2 years. UK government to publish Article 50 legislation on Thursday - Reuters. To the upside, resistance levels might be located at 1.2630/35, 1.2730/35 (Dec 13 & 14 high) and 1.2775 (Dec 6 high). On the flip side, support could be seen at 1.2550 (American session low / 20-hour moving average), 1.2485/90 (daily low) and 1.2415 (Jan 17 high / Jan 24 low).

USD/JPY: risks mounting to the downside below 114 handle
USD/JPY is trading at 113.62, down -0.12% on the day, having posted a daily high at 114.00 and low at 113.04.USD/JPY has met a double top and is bears are back on the defensive vrs a fragile dollar that is volatile on every move that Trump is making within the first full week of his presidency."The yen was rising on the back of stronger than expected trade data for December and its risk profile leaves it vulnerable to knee-jerk haven-driven gains in response to the broader tone of uncertainty. Headline risk is elevated, U.S. releases are limited, and options markets continue to fade much of the premium for protection against upside risk," explained analysts at Scotiabank.With spot trading at 113.62, we can see next resistance ahead at 113.77 (Daily Open), 113.91 (Yesterday's High), 113.94 (Hourly 200 SMA), 113.94 (Hourly 100 SMA) and 114.00 (Daily High). Support below can be found at 113.58 (Hourly 20 EMA), 113.40 (Daily Classic PP), 113.15 (Weekly Low), 113.04 (Daily Low) and 112.89 (Daily Classic S1).WTI jumps to daily highs post-EIA, above $53.00 - a potetial for more downside in the dollar and bearish for USD/JPY.

AUD/USD: minor recovery back in play, higher low and risk on, 0.76 here we come?
Currently, AUD/USD is trading at 0.7549, down -0.46% on the day, having posted a daily high at 0.7600 and low at 0.7515.AUD/USD has been two way business and is back on the inor recovery from a higher low, up from Asia's low post poor Aussie data. Risk is back on today and stocks rally making recprd highs.US stocks surge to record highs, Dow hits 20,000 historic milestone. However, the main driver comes in the dollar that has been softer against nearly all the major currencies. "Participants appear to be growing increasingly frustrated with emerging priorities of the new US Administration," explained analysts at Brown Brothers Harriman explained. "They want to hear more details and discussion of the tax reform, deregulation, and infrastructure plans. However, the priority today is on authorizing the construction of a wall between the US and Mexico and possible action on immigration from "terror-prone" countries, according to press reports." In respect to the Aussie Q4 CPI miss, it was not major, but it has spurred talk that the central bank could cut rates again, with some thinking as early as next month, as noted by the analyst s at BBH. "Consumer prices in Q4 rose 0.5% instead of 0.7% as it did in Q3 and as the median forecast in the Bloomberg survey had expected. The year-over-year pace was 1.5% (up from 1.3%), just off the 1.6% anticipated. The trimmed mean and weighted median were also 0.1 percentage points less than expected. While the RBA cannot be pleased with the sharpness of the Australian dollar's appreciation, we are not convinced that the miss on Q4 CPI is sufficient to push the central bank into another rate cut."Current price is 0.7549, with resistance ahead at 0.7552 (Hourly 20 EMA), 0.7553 (Yesterday's Low), 0.7554 (Daily Classic S1), 0.7561 (Hourly 100 SMA) and 0.7583 (Daily Classic PP). Next support to the downside can be found at 0.7536 (Hourly 200 SMA), 0.7533 (Weekly Classic PP), 0.7525 (Daily Classic S2), 0.7515 (Daily Low) and 0.7512 (Weekly Low).

NZD/USD bounces off lows at 0.7260, CPI eyed
Currently, NZD/USD is trading at 0.7264, up +0.24% on the day, having posted a daily high at 0.7285 and low at 0.7224.The New Zealand dollar vs. American dollar had so far a decent trading day as it battled mixed scenarios from the Trump Trade Agenda and missed CPI not too far in Australia. Furthermore, later in the Asian session, the NZD economic docket takes the spotlight as the country's CPI figures are expected; Is the Kiwi about to experience the same scenario as its neighbor or there is a surprise in the cards? Historical data available for traders and investors, during January, indicates that NZD/USD pair had the best trading day at +1.60% (Jan.17) or 115-pips, and the worst at -1.26% (Jan.18) or 89-pips.Jonathan Mitchell and Gyles Beckford, reporters at Radio NZ, noted, "Sydney-based Paul Bloxham, the regional chief economist for HSBC Bank, said New Zealand once again was leading the pack of developed economies with annual growth expected to sit around 3 percent for the next couple of years. The 2017 agenda was looking promising, he said. "We think that the tourism and the construction stories will continue to be key drivers of New Zealand's growth in 2017," he said. Mr. Bloxham said the lift in global dairy prices helped turned the growth outlook more positive as well."In terms of technical levels, upside barriers are aligned at 73.05 (high Nov. 10) and above that at 0.7402 (high Nov.8). While supports are aligned at 0.7170 (horizontal support), 0.7146 (100-DMA) and below that at 0.7095 (200-DMA). On the other hand, Stochastic Oscillator (5,3,3) seems slowly moving into the overbought territory, therefore, there is evidence to expect further Kiwi gains in the near term.

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