Markets are correcting some of today's gains, where the EUR/USD pulled back to trade around 1.3250 level after printing a high at 1.3285. It's expected that the pair will hold above 1.3200 pivot today, as cautious optimism dominates after the Greek parliament backed the needed spending cuts as a price for the second bailout, in addition to the lack of economic headlines today, and in anticipation for tomorrows busy calendar as major economic releases are due to be released.
The ZEW economic sentiment is to be released at 10:00GMT, where markets are set to price in an improvement in euro zone investor's mood from -21.6 in January to -11.6 this month. Meanwhile, industrial activity is expected to show a deeper contraction to 1.1% from the previous reading of -0.1%. From the U.S., retails sales index is the most anticipated headline for tomorrow at 13:30GMT, expectations point towards a gain of 0.8% in retailing activities within the country.
Technically speaking, the inverted head and shoulders pattern over the daily charts remains in play, as price dipped below the neckline of the pattern among 1.3200-1.3230 on Friday; however it started the week above the level. Short term bias remains to the upside targeting initially the latest highs near 1.3320. Steady trading above this level will open the door to 1.3450 and 1.3500.
The USD/JPY continues to push to the upside; however it's having some difficulties around the descending resistance of the triangle pattern over daily basis. Breaching this level around 77.60-77.65 shall extend the rally initially towards 78.30 followed by the major high at 79.50. Intraday support levels start at 77.50 and 77.30.
The Aussie is maintaining its shiny performance, where it rebounded more than 100 pips today, after opening the day with an upside gap at 1.0688 the pair printed the high at 1.0777, and currently pushing to the upside. It managed to settle above the 50 (4-hour) SMA and trying to breach a short term descending resistance for a broadening wedge formation around 1.0765, to extend the rally to the latest high near 1.0840. The pair should find support today near 1.0740-1.0735, if breached; 1.0680 should limit any further pressure.
Gold erased the gains we've seen with the start of the session, currently down around $8 from the opening price at $1726.00. The shiny metal is trading within a bullish continuation flag pattern; the support of this pattern resides now near 1700.00, and coincides with the short term ascending trend-line, a breach below $1700 may be negative for the commodity where downside targets shall extend to $1680.00 and $1650.00. On the other hand, surpassing $1730.00 will open the door to $1745.00 and the high at $1760.00.