EUR/USD inter markets: door open for a test of 1.1040
EUR/USD is losing ground for the second consecutive session so far this week, coming down to test levels below the critical 200-day sma although finding some decent support in the mid-1.1100s for the time being.The onging rally in the greenback remains the exclusive catalyst behind the pair?s weekly decline, helped at the same time by rising yields in US money markets while widening the spread differential vs. their German peers. The US Dollar Index (DXY) keeps the upside intact, managing to regain the critical 96.00 handle well underpinned by renewed sentiment following recent upbeat results in the US calendar.Volatility tracked by VIX remains in the lower end of the range, while Fed Funds futures prices are challenging recent highs and are signalling a probability of a rate hike by the Federal Reserve at levels close to 56%, according to CME Group?s FedWatch tool.All in all, the current scenario keeps favouring the greenback ahead of the critical Non-farm Payrolls figures for the month of September due on Friday. Regarding spot, the next support emerges around the 1.1100 area, where sit the 2014-2016 support line and a retracement of the June-August up move. If cleared, July?s lows in the mid-1.0900s is up next.

GBP/USD fails near 1.28, skids back to fresh 3-decade lows
The sellers are back in control after the bulls failed to take on the recovery post-PMI above 1.28 handle, now pushing GBP/USD closer towards 1.2700 levels.A stronger UK construction PMI report inspired minor-recovery in the cable lost steam jusy shy of 1.28 handle, providing an excuse to the GBP traders to take advantage of the bounce as a fresh selling opportunity. At the time of writing, GBP/USD hovers near fresh 31-year lows struck at 1.2740 few minutes ago, recording a -0.70% loss on the day.The sell-off in the pound across the board was triggered by Sunday?s comments by the UK PM May, after she set the timeline for the commencement of the Brexit-process, which flared up Brexit-related anxiety once again.On the data-front, the UK Markit/CIPS Construction PMI jumped to 52.3 in Sept vs 49.0 expectations. All eyes now remain on the US employment report due in the second half of this week for fresh moves in the major.The pair has an immediate resistance at 1.2800 (key support-turned resistance), above which at 1.2850 (psychological levels) and next at 1.2900 (round number). The next key support is seen at 1.2700 (1985 levels)

USD/CHF taps 0.9800 mark, aiming for a fresh break-out above 200-DMA
Extending its bullish momentum above 100-day SMA, the USD/CHF pair jumped to the highest level since Sept. 21 and retested the very important 200-day SMA.Currently trading around 0.9795 region, off few pips from session peak level beyond 0.9800 handle, the pair continues to benefit from a broadly stronger greenback, which was seen building on to its overnight gains led by surprisingly strong US ISM manufacturing PMI. Moreover, the prevalent risk-friendly environment is also supportive of the pair's strong up-move on Tuesday as the Swiss Franc seems to be losing its safe-haven appeal.In absence of any market-moving economic releases from the US, the prevalent bullish sentiment around the US Dollar seems to assist the pair to continue scaling higher as market attention now turns to one of the major economic indicator from the US, monthly jobs report, scheduled for release on Friday.On a sustained move above 0.9800 handle (200-day SMA) the pair is likely to dart towards 0.9819 (Sept. 19 high) ahead of testing September monthly high resistance near 0.9885. Meanwhile on the downside, retracement back below 0.9785-80 immediate support could trigger some profit taking move back towards 100-day SMA support near 0.9755-50 region.

USD/CAD benefits from bullish DXY & weaker Oil
The US dollar extends the rebound versus its Canadian counterpart into a second day this Tuesday, sending USD/CAD through the roof in a bid to regain 1.32 handle.USD/CAD pair rises +0.36% to 1.3167, trying another attempt to break above 1.3175 resistances. The resource-linked Loonie suffers from the extended correction in oil prices, driving USD/CAD northwards.Moreover, persistent broad based US dollar strength, mainly triggered by a massive sell-off in GBP/USD amid jitters surrounding Brexit process, also adds to the upside in the major. The US dollar index (DXY), a gauge of greenback?s relative strength, advances +0.55% to fresh two-week tops of 96.21.Looking ahead, focus shifts towards the US and Canadian employment reports due later this week for next direction on the prices. While oil price-action will be also closely eyed, in light of weekly US supply reports due on the cards.To the upside, the next resistances are seen near 1.3186 (Sept 29 high) and 1.3200 (round figure) and from there to 1.3250 (psychological levels). To the downside, immediate support might be located at 1.3151 (10 & 20-DMA) and below that at 1.3100 (round number) and at 1.3044 (Sept 29 low).

USD/JPY clings to strong gains above 102.00 handle
The USD/JPY pair maintained its strong bid tone and is now sustaining its move beyond 102.00 handle, albeit finding some resistance near mid-102.00s.Currently trading around 102.35 region, the pair has retraced few pips from session high but has held above 50-day SMA for majority of the Tuesday's trading session amid prevalent risk-onsentiment, which is weighing on the safe-haven demand of the Japanese Yen. Meanwhile, the greenback, as measured by the overall US Dollar Index, continues to benfit from Monday's surprisingly strong than expected release of US ISM manufacturing PMI and extended its overnight gains. In absence of any market moving economic releases from the US, the pair would continue to take cues from the prevalent risk sentiment as market participants continue to reposition themselves ahead of this week's key event risk, non-farm payrolls data on Friday.Omkar Godbole, Analyst and Editor at FXStreet, notes, "the pair has repeatedly failed to hold above 50-DMA for more than three trading session this year. Hence, caution is advised, unless the resistance at 103.36 is breached on daily closing basis, in which case a major hurdle at 105.50 could be put to test. The odds of the pair capitalizing on the bullish break above 50-DMA are high this time, given we are coming-off repeated failed attempts to breach 100.71 (50% of 2011 low 2015 high) on the monthly chart."On the downside, failure to take out triangle resistance today followed by a break below Asian session low of 101.57 could yield re-test of 101.00 levels.

WTI stuck within a tight range above $48.00
The recent upside in crude oil prices seems to have run out of steam on Tuesday, with the West Texas Intermediate currently hovering over the $48.30 region.The persistent up move in the greenback during the first half of the week keeps capping occasional rallies in WTI, while traders remain vigilant on the API?s weekly report on US crude stockpiles due later in the NA session.In the meantime, the recent deal at the OPEC meeting in Algiers regarding an output freeze continue to bolster sentiment in light of the November meeting and keeps the downside somewhat limited.Later in the week, the EIA?s weekly report is due tomorrow, ahead of US oil rig count by Baker Hughes on Friday along with the critical Non-farm Payrolls in September (170K exp.).At the moment the barrel of WTI is losing 0.45% at $48.60 facing the next support at $46.28 (100-day sma) followed by $45.85 (20-day sma) and finally $42.55 (low Sep.20). On the flip side, a breakout of $50.54 (high Jun.22) would expose $51.67 (2016 high Jun.6) and then $53.89 (high Jul.10).

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