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Euro remained under pressure during the Asian and European sessions heading into the U.S. session down more than 55 pips. The pair has reversed from the descending resistance of the possible falling wedge pattern we mentioned yesterday. For now, we advise being cautious trading the pair as we are approaching the key technical support at 1.3000 psychological barrier, while traders anticipate the awaited bond auction from Spain tomorrow morning. Thus, the risk-on trade could be under threat within the upcoming hours.

Technical wise, a breach above the descending resistance of the wedge could signal a short term recovery for the pair, for a possible retest of the latest high at 1.3215 and 1.3250. While taking 1.3000 shall be a major catalyst for further bearishness towards 2011 lows at 1.2650 area.

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The GBP/USD pair continues to push to the upside after the BOE minutes, retesting 1.6000 psychological resistance. A break above 1.6000 should signal further upside towards 1.6060 and the top of the rising wedge pattern near 1.6150 major resistance. Bullishness is likely to continue; so long as the pair remains trading above 1.5800 key support level.

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The USD/JPY rebounded yesterday, we were anticipating this rebound towards the top of the descending channel around 81.80 area, however the pair topped at 81.55 this morning, anyhow price has breached a key technical resistance which should turn into support now at 81.20 in addition to the 50-days SMA. Thus we still see upside potential for the pair towards 81.80-82.00 resistance.

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Gold continues to trade with a downside bias within the main descending channel, however above the previously breached descending trend line, while Stochastic indicator is providing signs of bullish divergence; accordingly, we see another attempt to the top of channel soon around 1670.00-1675.00 area. While a break above the aforementioned resistance could extend the move to 1700.00. On the other hand, steady trading below 1630.00 shall invalidate any short term bullishness and signal further selloff.