EUR/USD inter-markets: sidelined ahead of a leg lower
EUR/USD is so far extending its consolidative pattern around the psychological 1.1000 handle, with decent support in the 1.0980 region and gains capped around the proximity of 1.1030 for the time being.Yields in the US money markets keeps falling from recent highs since the release of US Retail Sales on Friday, accelerating the downside during the first half of the week and removing tailwinds from the USD rally.However, the renewed offered bias around the buck seems to lack of sustainability as expectations of a Fed?s move by year-end continues to bolster the sentiment in USD. According to CME Group?s FedWatch tool, the probability of a rate hike by the Federal Reserve at the December meeting stays firm at 60%, keeping pullbacks in the dollar shallow.Further gains in EUR/USD should find initial hurdle around the 7-month resistance line at 1.1015 followed by the 1.1060/70 area, where sits the 4-month resistance line. Further north, several moving averages should offer temporary resistance ahead of the critical 200-day sma above 1.1170.

GBP/USD through 1.2300 on UK data, session tops
The Sterling met extra buying pressure following UK?s jobs report today, sending GBP/USD back above the 1.2300 barrier.The pair managed to break above 1.2300 the figure after UK?s Claimant Count Change increased by 0.7K during September, less than initially estimated. In addition, the ILO unemployment rate has stayed unchanged at 4.9%, matching consensus.Spot is thus extending its weekly upside while looking to break above the 1.2300 handle on a more sustainable fashion. Today?s results add to yesterday?s higher-than-expected inflation figures during September, all collaborating with a better sentiment around GBP (although its extent remains doubtful to say the least).The USD will take centre stage later in the NA session with the releases of MBA?s Mortgage Applications, Building Permits and Housing Starts, all preceding the Fed?s Beige Book.In addition, speeches by San Francisco Fed J.Williams (2018 voter, neutral), Philly Fed P.Harker (2017 voter, hawkish) and Dallas Fed R.Kaplan (2017 voter, neutral) will keep the attention around USD.As of writing the pair is gaining 0.14% at 1.2315 and a break above 1.2327 (high Oct.18) would aim for 1.2377 (high Oct.11) and finally 1.2614 (20-day sma). On the flip side, the immediate support lines up at 1.2086 (low Oct.11) ahead of 1.1450 (low post-?flash crash? Oct.7).

AUD/USD scope for a test of 0.7704/31 Commerzbank
Karen Jones, Head of FICC Technical Analysis at Commerzbank, sees the Aussie dollar to re-visit the 0.7704/31 area.?The currency pair is approaching the top of the converging range circa .7704 and risks are growing for an overshoot to the .7704/31 September highs. Above here would introduce scope to the .7836 April high (not favoured)?.?Support remains the five month support line at .7521 and below it lies the 2016 uptrend line at .7501. Further down lurk the September low at .7443 and the 200 day moving average at .7453. This remains a critical break down point to the .7146 May low?.

EUR/GBP challenging lows after UK jobs report
The EUR/GBP cross reversed part of tepid recovery gains to mid-0.8900s and is now fast approaching session low following the release of UK jobs report. Currently trading around 0.8930-25 region, the cross ran through fresh offers after the Office for National Statistics reported that the UK claimant counts, change in the number of people claiming unemployment-related benefits, edged lower to 700 in September from previous month's 2,400. Meanwhile, unemployment rate remained at eight-year lows of 4.9%, while average earnings index matched expectations and came-in to show a wage growth of 2.3% 3m y/y.Today's UK employment report provided an additional boost to the British Pound recovery momentum and held the EUR/GBP cross closer to a near two-week low touched on Tuesday in the aftermath of upbeat UK inflation data. Meanwhile, a range-bound price action around the EUR/USD pair has failed to provide any impetus as investors now look forward to Thursday's ECB monetary policy decision and subsequent presser by ECB President Mario Draghi.Immediate downside support is pegged at 0.8915 level (yesterday's low), which if broke is likely to drag the cross immediately towards 0.8900 handle. A convincing break below 0.8900 handle might turn the pair vulnerable to extend its corrective move towards 0.8850-45 horizontal support.On the upside, 0.8950 level now becomes immediate resistance above which the momentum is likely to get extended towards 0.9000 psychological mark. A follow through buying interest might continue boosting the cross further but any additional up-move might now be capped at 0.9050 strong resistance.

USD/CAD snaps 4-days of losing streak, BOC in focus
The USD/CAD pair extended recovery momentum from session low and touched daily peak at 1.3128 before retracing few pips to currently trade around 1.3115 region. A mildly weaker opening for European equity markets is driving some safe-haven flows towards the US Dollar, helping the pair to rebound from the vicinity of 50-day SMA and snap four consecutive days of losing streak.Further up-move, however, was restricted as upbeat sentiment surrounding oil prices, with WTI crude oil now approaching $51.00/barrel mark, is benefitting the commodity-linked currency - loonie. Crude oil gained traction after API, on Tuesday, reported an unexpected decline in US stockpiles during the week ended October 14.Going forward, BOC monetary policy decision and subsequent press conference will take the centre stage on Wednesday, while short-term traders taking cues from the official EIA report on weekly crude inventories. From the US, traders will confront the release of building permits and housing starts data during early NA session.On a sustained move above session high resistance near 1.3130, the pair is likely to make a fresh attempt towards the very important 200-day SMA resistance near 1.3170-75 region, which if cleared seems to lift the pair beyond 1.3200 handle towards its next major resistance near 1.3050 area. Meanwhile weakness below session low support near 1.3085 level is likely to get extended towards 50-day SMA near 1.3070 below which the pair is likely to aim towards 100-day SMA support near 1.3025 region.

Gold consolidating recent gains to nearly 2-week high
Gold oscillated in a narrow trading band on Wednesday, consolidating two days of recovery gains to nearly two-week high.Currently hovering around $1262 level, the ongoing recovery momentum in the British Pound helped ease US Dollar's bullish momentum and is benefitting dollar-denominated commodities - like gold. Moreover, signs of inflation picking-up in the US and UK, as depicted by the latest CPI print, provided an additional boost and lifted the precious metal on Tuesday. Meanwhile, the prevalent cautious sentiment in European equity markets is extending support to traditional safe-haven assets and assisting the yellow metal to hold on to recovery strength recorded since the beginning of this week to 7-day high. The commodity, however, remained capped below the very important 200-day SMA and as Carol Harmer, Founder at charmertradingacademy.com, notes "Gold has broken out of its little continuation pattern...now to confirm we need it to break 1265...If we can do this then we are on our way to 1275 and possibly then beyond..."Carol Harmer further writes, "we retraced 38.2 on the weekly charts and that was quite a bullish signal....this means that the weekly has superseded the daily pattern...and unless we see a close back below 1257 the market will now trade higher...if above 1275 we look for 1287 as a nearby targeted area....Weekly charts look oversold, and beginning to turn...so a move higher should not be surprising...Go with the price....look for further strength...and as I have said...oly a break below 1257 would make the market look weaker once more and see a return to the base of the pattern located down at 1245...."

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