EUR/USD: Bears eye 50-DMA
EUR/USD is on a declining trend for the third straight session, extending its corrective slide from the recent rally to fresh eight-week tops reached at 1.0831. The spot has lost more-than 150 pips so far this week, and now remains exposed to further downside risks towards 50-DMA support placed at 1.0590 in near-term.The picking-up in buying interest seen around the greenback versus its six main competitors over the last few trading sessions amid unwinding of Trump trades, has propelling the renewed selling bias in EUR/USD.Further, the shared currency remains weighted by mounting political concerns in the Euro area economies ? France and Germany, with elections round the corner. Reuters reported that lingering concerns over French elections pushed French/German yield spread out to 79 bps, widest since Nov 2012. Hence, widening bonds yield differentials between the French 10-year government bonds and 10-year German bund yields favor the EUR shorts.Technically, the pair retains the weak tone seen on previous updates, and is poised to extend its decline according to intraday readings, given that in the 4 hours chart, indicators continue heading south near oversold territory, whilst the 20 SMA is about to cross below the 100 SMA, both above the 1.0700 price zone.The pair has an immediate support around 1.0620, where it has the 200 SMA and the low set on January 30th. Below the level, the decline can pause around 1.0590, but an extension lower should result in a test of the 1.0565 level, the 23.6% retracement of the November/January decline. The immediate resistance is the session high around 1.0665, with a recovery beyond it favoring an advance up to 1.0700/10

GBP/USD bias neutral to negative Commerzbank
Karen Jones, Head of FICC Technical Analysis at Commerzbank, remains cautious on Cable, adding that the bias stays neutral to negative.?GBP/USD yesterday eroded its 55 day ma but no close was seen below here it lies at 1.2429.Yesterday?s price action was a minor reversal and caution is warranted. The market last week was rejected by the top of a channel at 1.2702. A close below the 55 day ma will introduce potential to the 1.2253 the 18th January low. Our bias is neutral to negative?.?We suspect that prices will need to go sub 1.2250 in order to alleviate immediate upside pressure and trigger losses to the 1.1988/80 recent low?.

USD/JPY keeps the red above 112.00
The greenback remains on the defensive vs. its Japanese counterpart on Wednesday, with USD/JPY struggling to gather some traction above the 112.00 handle.The pair is reverting yesterday?s gains, although it manages well to keep the trade above the 112.00 handle for the time being after finding quite decent support in weekly lows around 111.60.US yields, particularly the well-correlated 10-year benchmark is losing ground for the third session in a row today and at the same trading in the area of 3-week lows in sub-2.40% levels, adding to the pair?s downside.JPY remains somewhat supported by extreme positioning levels, as net shorts receded to multi-week lows in the week to January 31 according to the latest CFTC report. In the same line, scepticism over the ability of the BoJ to keep the 10-y yield around 0% stays on the rise, adding to JPY buying.As of writing the pair is retreating 0.10% at 112.27 and a break below 112.04 (low Feb.8) would aim for 111.98 (38.2% Fibo of the November-December 2015 up move) and then 111.57 (low Feb.7). On the upside, the initial hurdle sits at 112.81 (high Feb.6) followed by 113.44 (high Feb.3) and finally 113.57 (20-day sma).

Gold inter-markets: all set to continue with its near-term upward trajectory
After an initial downslide to $1230 level, Gold regained traction and touched a fresh three month peak amid uncertain environment. Currently trading around $1236 region, the precious metal ignored the ongoing US Dollar recovery and continued gaining traction in wake of political instability in Europe and persistent uncertainty about President Donald Trump?s policies. A fresh wave of downslide in the longer-term US Treasury bond yields (10 & 30-years) is indicative of the prevalent nervousness in the market and supported the metal?s up-move during mid-European session. Recent slide in the US Treasury bond yields are also pointing towards diming possibilities of additional Fed rate-hike action in the near-term. In fact the CME Group's FedWatch Tool suggests over 90% probability of no rate-hike action at the Fed's next monetary policy meeting in March, thus lowering the opportunity cost of holding the non-yielding bullion and limiting any immediate downside prospects.In addition to this, Trump-led rally in the US stock markets also seemed to have slowed, as investors turn skittish, which eventually is extending additional support to the yellow metal's safe-haven appeal and collaborating to the recent up-move.With a strong degree of correlation with the US Treasury bond yields, the metal seems all set to extend its recent bullish trajectory. Only intrinsic that might hinder the bullish run is ongoing recovery around greenback, which tends to weigh on dollar-denominated commodities like gold.

USD/CAD sinks to session low near 1.3150 despite of weaker oil prices
The Canadian dollar defied broad based US Dollar strength and weaker oil prices, with the USD/CAD pair sinking to session lows near mid-1.3100s.The pair once again failed to capitalize on its early up-move and sustain its move to 1.3200 handle. The pair subsequently ran through some fresh offers and has now reversed part of previous session's strong gains.A modest recovery in oil prices, with WTI crude oil bouncing off lows to currently trade within striking distance of reclaiming $52.00/barrel mark, was seen supporting the commodity-linked currency - Loonie. Moreover, Tuesday's better-than-expected Canadian trade surplus continues to underpin the Canadian Dollar and further collaborated towards accelerating the pair's retracement move from two-week highs touched yesterday.Later during the day, EIA's crude oil inventories report would influence oil prices and as a result of high degree of correlation, would provide fresh impetus for the major. Meanwhile, housing starts data out of Canada would also be looked upon for some short-term trading opportunities during early NA session.Immediate support is pegged at the very important 200-day SMA near 1.3130-25 region below which the pair is likely to break below 1.3100 handle and head towards testing 1.3070-60 horizontal support. On the flip side, momentum above 1.3185 immediate resistance might assist the pair back towards 1.3200 handle, which if conquered seems to accelerate the up-move towards 50-day SMA resistance near 1.3250-55 region.

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