EUR/USD tumbles to lows near 1.0660
EUR/USD has quickly dropped to fresh daily lows in the 1.0660 area in response to an acceleration in the demand for the US Dollar.Spot has come under renewed and strong selling pressure early in Europe today, breaking below the short-term support line and the Fibo retracement around the 1.0700 handle.The greenback has intensified its correction higher following last week?s sharp sell-off, prompting the ongoing correction in the risk-associated space and eyeing the critical 101.00 barrier when gauged by the US Dollar Index (DXY).EUR is adding to yesterday?s losses, always with the USD-dynamics as the exclusive driver of the price action although Monday?s speech by President Draghi sounded somewhat more dovish than expected. Draghi reiterated that the Governing Council is ready to increase the current QE programme both in size and duration, while he once again talked down the recent pick up in inflation figures, saying it was largely driven by energy prices.Data wise in Euroland, German Industrial Production has contracted at a monthly 3.0% during December, reverting the previous 0.5% expansion. Across the pond, December?s Trade Balance figures are due seconded by JOLTs Job Openings.EUR/USD levels to watchThe pair is now losing 0.72% at 1.0671 and a break below 1.0617 (low Jan.30) would target 1.0601 (55-day sma) en route to 1.0566 (23.6% Fibo of November-January decline). On the upside, the initial hurdle sits at 1.0745 (high Feb.7) followed by 1.0781 (100-day sma) and finally 1.0829 (high Feb.2).

GBP/USD plunges to three-week lows near 1.2350 level
The GBP/USD pair accelerated the downslide during early European session and has now broken below 1.2400 handle.Currently trading around 1.2365 region, the lowest level since Jan. 20, continuous strong bid tone around the US Dollar has been a key driver of the pair's downslide on Tuesday. Adding to this, possibilities of some big stops getting triggered on a decisive break below 1.2400 handle also seems to have collaborated to the pair's sharp downslide in the past hour or so. Meanwhile, the British Pound has been under some selling pressure in wake of perceived dovish statement from BoE and against the backdrop of disappointing UK PMI reading out last week. Moreover, cautious investors? sentiment, amid the ongoing Parliament discussion over the Article 50 legislation, continues to prompt traders to unwind any near-term bullish trading positions and is further contributing to the pair's sharp slide. Even from technical perspective, the pair has now divisively broken below its immediate strong support, near 100-day and 50-day SMAs, and hence, seems vulnerable to continue with its downward trajectory in the near-term.Immediate support on the downside is seen near 1.2330-25 region below which the pair is likely to slide further towards 1.2250 intermediate support, en-route 1.2200 round figure mark. On the flip side, any recovery above 1.2400 handle might now confront strong resistance near 1.2445-50 region.

USD/JPY bounces off two-month lows, eyeing to reclaim 112.00 handle
The USD/JPY pair was seen consolidating its slide to two-month lows and remained below 112.00 handle, albeit has managed to bounce off Asian session lows near 111.60 region.Earlier during Asian session, persistent risk aversion mood, as depicted by negative sentiment surrounding Asian equity markets, benefitted the Japanese Yen's safe-haven appeal and dragged the pair to its lowest level since Nov. 28. The selling pressure around the major, however, abated amid ongoing greenback recovery, with the key US Dollar Index building on to Monday's steady recovery back above 100.00 psychological mark and helping the pair to recover some ground to currently trade around 111.85-90 region. Meanwhile, nervousness ahead of the US President Donald Trump's meeting with Japanese Prime Minister Shinzo Abe on Friday has also kept investors on the back foot and might restrict any swift near-term recovery for the major. Later during NA session, the US economic docket features the release of trade balance data and would be watched for short-term trading opportunities. In the meantime, broader market risk-sentiment would continue to derive demand for safe-haven assets and would be a key determinant of the pair's movement on Tuesday. Immediate upside resistance is pegged at 112.00 handle above which the pair is likely to recover back to 112.40-45 resistance ahead of 112.65-70 horizontal zone. On the flip side, weakness below session low support near 111.60 level seems to drag the pair towards 111.35 level (Nov. 28 low), en-route 111.00 round figure mark.

AUD/USD pauses RBA-led rally amid USD buying
The AUD/USD pair rallied as high as 0.7680 after the RBA talked up the Australian economic growth prospects in its monetary policy statement, although the rally lost steam as broad based US dollar strength put a lid on the prices.Currently, the AUD/USD pair rises +0.16% to 0.7671, retreating from session highs of 0.7680 reached post-RBA decision. The RBA left its cash rate unchanged at a record low of 1.50%, while maintaining a neutral stance on the interest rates outlook.The AUD bulls cheered a bit more upbeat outlook on the global economy and commodities? prices, while the central expects Q4 GDP to make a comeback. However, the bullish momentum seen behind the greenback against its main competitors combined with reports of rising Chinese iron-ore stockpiles, continue to weigh on the spot.Next of note for the US JOLTS openings data, which will be reported later in the NA session.The pair finds the immediate resistance at 0.7699 (multi-week high) above which gains could be extended to the next hurdle located 0.7750 (psychological levels) and 0.7773 (Nov 9 high). On the flip side, the immediate support located at 0.7596/83 (1h 200-SMA/ 20-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7524 (200-DMA) and below that 0.7500 (zero figure).

GBP/JPY pauses sell-off, regains 100-DMA and beyond
The pound is seen making minor-recovery attempts versus its Japanese counterpart over the last hour, lifting GBP/JPY from three-day troughs struck at 138.55.The immense selling pressure seen behind the cross can be mainly attributed to the GBP/USD sell-off, as the US dollar extends the recent bullish run and rallies hard against most of the majors.However, over the last hour, the spot staged a tepid-bounce, in wake of the extension of gains in USD/JPY, which offered some respite to the cross. Next of note for GBP/JPY remains the US JOBS job openings data, which may provide fresh incentives on the US dollar, eventually impacting both the GBP and JPY.The spot is last seen exchanging hands at 138.98, still down -0.24% on the day. A break above 139.75 (daily pivot) would open the doors to 140 (zero figure) and then to 140.37 (daily R1). On the lower side, a breach of 138.55 (daily low) could yield a sell-off to 138.09 (daily S2). A violation there would expose strong support at 137.50 (key support).

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