EUR/USD testing highs near 1.0920 ahead of German CPI
The softer tone in the greenback is helping EUR/USD to print daily highs in the 1.0920 region ahead of key German releases.The pair remains on its way to close the first week with gains after three consecutive pullbacks, managing to bounce off lows in the mid-1.0800s although the upside seems to have run out of steam in the 1.0950 zone, coincident with July?s troughs and the 2014-2016 resistance line. The quite resilient tone in spot obbeys almost exclusively to USD-dynamics, although the prospects of extra gains appear clouded by increasing expectations of a Fed?s rate hike by year-end, which remains supportive of the buck. Later in the session advanced CPI figures for the current month are due in Germany, ahead of flash US GDP figures during the third quarter and the final print of October?s Reuters/Michigan index. The pair is now up 0.18% at 1.0917 facing the next resistance at 1.0947 (high Oct.26) followed by 1.1016 (7-month resistance line) and then 1.1041 (post-ECB spike Oct.20). On the other hand, a breakdown of 1.0820 (low Mar.10) would target 1.0709 (2016 low Jan.5) en route to 1.0538 (low Dec.3 2015).

GBP/USD a test of 1.2080 remains on the cards UOB
Peter Chia, FX Strategist at UOB Group, believes Cable could attempt another visit to lows in the 1.2080 area.?GBP/USD had no follow through from a better than expected UK 3Q prelim GDP (2.3% y/y vs 2.1% est), with an initial spike to 1.2273 quickly faded to fresh sessions lows of 1.2149?.?The disappointing price action in cable overnight is uncannily similar to that of AUD/USD prior day after the Australia?s 3Q CPI beat. Following that same pattern, one can expect the weakness in GBP to possibly extend towards 1.2080/1.2100 in the coming sessions?.

AUD/USD bullish above 0.7547 Commerzbank
In view of Karen Jones, Head of Technical Analysis at Commerzbank, the stance on AUD/USD remains bid while above 0.7547.?The market has is under pressure in its range having again failed at the .7731 September highs, intraday Elliott wave counts are now contradictory and we revert to neutral. Above .7730/60 would introduce scope to the .7836 April high and this remains viable. It remains bid while above the five month support line at .7547?.?Below the 5 month support line lies the 2016 uptrend line at .7526. Further down lies the September low at .7443 and the 200 day moving average at .7477. This remains a critical break down point to the .7146 May low?.

USD/CAD attempting a fresh break-out through 1.3400 handle
After Monday's brief reversal, the USD/CAD pair resumed with its upward trajectory and is now making a fresh attempt to break through 1.3400 handle.The pair maintained bid tone for the fourth straight session on Friday, near 7-month high, amid broad based US Dollar strength led by growing market expectations that the Federal Reserve would eventual move towards raising interest rates by the end of this year. CME group's FedWatch Tool is pricing-in 72% probability of such an action in December and has been underpinning the greenback in the past few weeks.Meanwhile, softness in oil prices, with the barrel of WTI crude sustaining weakness back below $50.00 mark, is also weighing on the commodity-linked currency - Loonie, and is supportive of the pair's recent upward trajectory. Later during NA session, the influential release of US GDP print for the third quarter of 2016 would grab investor attention and would be the next fundamental trigger that will assist to determine the pair's next leg of directional move. The US economic docket also features the revised UoM consumer sentiment for October. A sustained move above 1.3400 handle should open room for further appreciating move immediately towards 1.3445-50 resistance area en-route its next major hurdle near 1.3500 psychological mark. On the downside, weakness below 1.3375 immediate support could get extended towards 1.3350 support, which if broke might extend the corrective slide towards 1.3300-1.3290 weekly lows support.

NZD/USD trims early recovery gains, retreats to 0.7125
The NZD/USD pair trimmed majority of its early recovery gains closer to mid-0.7100s and is currently trading with only marginal gains around 0.7125 level. Continuous up-rise in the US 10-year Treasury bond yields, as markets continue to solidify expectations of December Fed rate-hike action, is weighing on higher-yielding currencies - like Kiwi, and restricted the initial attempted recovery move. The pair initial recovery to session peak level of 0.7147 was assisted by a broad based corrective slide in the US Dollar as traders seemed inclined to take some profits off the table ahead of today's key US GDP print, scheduled later during NA session.From technical perspective, given the pair's rejection on Wednesday from the vicinity of 100-day SMA, a subsequent weakness below 0.7100 handle would turn it vulnerable to extend its downslide further in the near-term.Immediate downside support is pegged near 0.7100 handle, which if broken is likely to accelerate the slide immediately towards monthly lows support near 0.7050-40 region. A follow through selling pressure would continue dragging the pair further towards the very important 200-day SMA support near 0.6980 region.Meanwhile on the upside, momentum above session peak resistance near 0.7150 level seems to get extended towards 100-day SMA strong resistance near 0.7190 region above which a fresh bout of short-covering is likely to boost the pair back towards 0.7235-40 important resistance.

US Dollar deflates to lows near 98.70, US GDP on sight
The US Dollar Index, which gauges the buck vs. its main rivals, is trading on a softer fashion at the end of the week, currently testing lows in the vicinity of 98.70.Despite the current leg lower, the index is extending its positive streak for the fifth week so far today, including a test of fresh 9-month peaks just above the 99.00 handle on Tuesday.Increasing bets of a Fed?s rate hike likely to be announced at the December meeting continue to sustain the USD-rally. In that direction, CME Group?s FedWatch tool now sees the probability of such an event at 72% based on Fed Funds futures prices.Later in the session, the greenback will grab all the attention in light of the release of the advanced US GDP figures for the third quarter, expected to expand at an annualized 2.5%, while the final print of the Reuters/Michigan index is seen up a tad to 88.1 for the current month.Yields in the US money markets keep the weekly rally well and sound so far today, with the 10-year benchmark navigating 5-month tops above 1.86%.The index is losing 0.14% at 98.78 and a breakdown of 98.31 (low Oct.26) would aim for 97.69 (20-day sma) and finally 95.86 (200-day sma). On the other hand, the next hurdle is located at 99.09 (high Oct.25) followed by 99.95 (high Jan.21) and then 100.60 (high Dec.3).

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. We assume no liability for any loss arising from any investment made based on the information provided in this communication.