EUR/USD continues to fluctuate near 1.0950 for the second straight day. The pair remains stuck between the 100- and 200-period SMAs on the 4-hour chart. The economic calendar will not offer any high-impact data releases. EUR/USD is having a difficult time finding direction for the second consecutive day on Tuesday and extending its consolidation near 1.0950.

The financial markets are currently pricing in sharp interest rate cuts over the course of the year. In reality, however, the last mile in reaching the inflation target will be challenging and will determine the future interest rate path. Increased volatility is therefore to be expected on the bond market. We consider US government bonds to be attractively valued. The general yield level makes bond investments interesting. In the case of corporate bonds, we favour bonds in the BBB rating segment. The global equity markets should also achieve gains in the 1st quarter. Economy Despite a slowdown in the 4th quarter, the US economy is still solid and thus largely unaffected by the sharp rise in interest rates and real wage losses since 2022. However, the support provided by accumulated savings could soon run out, although rising real wages should also favour the economy this year. We therefore expect only a slight slowdown in growth this year. Inflation should continue to fall over the course of the year. However, the extent of this will depend on the price momentum for services. We only expect GDP growth of +0.7% in the eurozone in 2024. Over the course of the first half of the year, slight impetus should come from industry. Private consumption will benefit from real wage increases and a robust labour market this year. The inflation rate has fallen significantly in recent months, but we expect a more volatile trend in the first half of 2024. The last mile on the way to achieving the inflation target will be challenging. The ECB will focus on the development of wages and corporate profits. Bonds We expect the first interest rate cut in the US in July. A moderate slowdown in the US economy should increasingly remove the basis for inflation and a further fall in inflation should then trigger swift interest rate cuts. Overall, we are forecasting -100 bp by December. The bond market is currently pricing in stronger interest rate hikes and is very volatile. We expect further swings as uncertainty will remain high. The ECB should begin slowly cutting interest rates from June onwards due to the still quite high core inflation. We do not expect a rapid normalisation of interest rate policy until after September as price pressure eases. German government bonds have been volatile in recent months and have thus followed the direction set by the USA. The expected economic recovery should cause yields on medium and longer maturities to rise slightly. We consider short maturities to be attractive. Currencies The expected moderate recovery of the eurozone economy and slight slowdown in growth in the US should support the euro against the US dollar. We are also forecasting a strengthening of the euro against the Swiss franc. Gold will benefit from the expected interest rate cuts in the 1st quarter. Equities In view of the strong sales and earnings growth forecast for 2024, we expect the global equity market index to grow moderately in the 1st quarter, in a range between 0% and +5%. We favour quality stocks from the healthcare, technology and consumer sectors. Download The Full Global Strategy

Good Morning! Dollar Index can trade within 102-103 while Euro could rise towards 1.10 while above 1.0870-1.09. EURJPY and USDJPY have declined sharply and could be bearish towards 157 and 143 respectively. USDCNY could rise slowly towards 7.18/20 while above 7.10/12. Aussie could be trading within 0.6650-0.6750 for the next few sessions while Pound could rise towards 1.28 or higher in the near term. USDRUB could trade within 90-92 for the next few sessions while EURINR may hold within 90.50-91.50. USDINR needs to rise from 83 else could break lower to test 82.90 before the expected rise is seen. The US Treasury yields have dipped slightly. The yields can rise further from here to test their resistances. Thereafter the overall downtrend can resume. The US CPI data release on Thursday will be important to watch.The German yields remain stable. Near-term view is positive to see a rise from here before reversing lower again. The 10Yr and 5Yr GoI are coming down as expected. Bias is negative to see more fall going forward. Dow Jones has risen back sharply but needs to rise above 37800 to negate the danger of falling. DAX has risen further and may look to rise more from here. Nifty has come down sharply but the levels of 21500-21400 can lend some support and keep intact our bullish view. Nikkei has risen towards its upper end of the range as expected. Need to see if a break happens on the upside or not. Shanghai has bounced back and if sustains, can rise further towards its immediate resistance. Crude prices look mixed and can continue to trade sideways for a while. Gold and Silver can fall while below 2060 and 23.50 respectively. Copper has bounced back but could face rejections from 3.85-3.88. Natural Gas might break above 3.00 and target further upside. Visit KSHITIJ official site to download the full analysis

Gold price rebounds from three-week lows as the focus shifts to US inflation data.  The US Dollar struggles with US Treasury bond yields amid mixed Fedspeak and a better mood. Gold price eyes a meaningful recovery above the 21-day SMA at $2,043 amid a Bull Cross.   Gold price is back in the green early Tuesday, building on the turnaround from three-week lows of $2,017 set on Monday. The US Dollar (USD) is holding its pullback amid a better market mood and a modest uptick in the US Treasury bond yields. Gold price benefits from softer US inflation expectations Risk sentiment remains in a firmer spot, as Asian equities track the Wall Street tech rally, endorsed by renewed hopes of aggressive interest rate cuts by the US Federal Reserve (Fed) later this year. The dovish Fed expectations were reinforced after the New York Fed's latest Survey of Consumer Expectations showed Tuesday that US consumers' projection of inflation over the short run fell to the lowest level in nearly three years in December. The US Dollar snapped its winning run and pulled back sharply from three-week highs against its major rival currencies, tracking the sell-off in the US Treasury bond yields on softer US inflation expectations-induced bets for a slew of Fed rate cuts this year. Markets are currently pricing in about 61% odds of a March Fed rate cut, up from a 55% chance seen following the release of the upbeat US Nonfarm Payrolls (NFP) report. Friday's NFP data showed that the US economy added 216K jobs in December, beating the market forecast of a 170K increase. The US Dollar rallied to fresh multi-week highs on strong US labor market report and less dovish Fed commentaries, weighing negatively on the Gold price. Fed Governor Michelle Bowman said on Monday that "inflation could fall further with policy rate held steady for some time." Atlanta Federal Reserve (Fed) President Raphael Bostic said that he expects two 25 basis points (bps) rate cuts by year-end 2024. All eyes now turn to Thursday's US Consumer Price Index (CPI) data, which will help revertebrate the market's pricing for the Fed rate cuts, impacting the US Dollar and Gold price valuations. The US CPI is forecast to rise at an annual pace of 3.2% in December, up slightly from a 3.1% increase in November. The Core CPI inflation is set to decline to 3.8% YoY in the reported period versus 4.0% in November. In the meantime, the broader market sentiment and the Fed expectations will continue to influence the price direction of the US Dollar-denominated Gold. Gold price technical analysis: Daily chart The near-term technical outlook for Gold price remains slightly in favor of buyers but acceptance above the 21-day Simple Moving Average (SMA) at $2,042 holds the key. The next upside target for Gold price is envisioned at Friday's high of $2,054, above which doors reopen for a test of the $2,100 barrier. The 100-day Simple Moving Average (SMA) closed above the 200-day SMA on Friday, validating an impending Bull Cross. The 14-day Relative Strength Index (RSI) indicator is looking to recapture the midline, suggesting that a meaningful Gold price recovery could be in the offing. On the downside, the initial support is seen at the $2,015 confluence, where the 50-day SMA and the previous day's low converge. A daily closing below the latter is critical to resuming the downtrend toward the $2,000 mark.

Markets Stocks are displaying signs of recovery after a challenging start to the year. The S&P 500 and Nasdaq Composite are notably in positive territory, with investors springing to life, driven by the resurgence of large technology stocks. The 10-year yields spent most of the day trading below 4%, contributing to the positive sentiment. While the week was expected to start quietly, traders quickly regained confidence, especially ahead of Thursday's release of the US Consumer Price Index (CPI). If current cooling estimates hold, the month-on-month increase is anticipated to be 0.3%, marking the slowest pace of annual core price growth since May 2021. This is expected to be perceived positively for risk markets, reinforcing the optimism for market-based rate cuts. A clean read from Friday's data was not readily ascertainable for a consensus "group think," with some flying blind while others saw a crystal clear soft landing path; hence, markets were clearly unclear to start the week. Nonetheless, it would be reasonable to argue that the overall evidence from Friday's data tends to lean more towards signalling economic deceleration in a Goldilocks type of way. With growth and inflation remaining subdued, the emerging picture suggests a Federal Reserve that is normalizing and likely to cut rates this year, possibly as soon as March or May if inflation cooperates. The critical debate now revolves around the pace and intensity of this follow-through. Thursday's US CPI report is anticipated to be crucial in providing further insights. Still, the market's reaction to consensus or slightly below prints remains uncertain, especially with softer inflation whisper numbers circulating. For index investors, maintaining harmony could still be a precarious struggle. The current situation for stocks is slippery, with little support expected from near-term growth. There's a dilemma: if the economy slows down, it could adversely affect earnings growth, but if the economy accelerates, it might delay rate cuts and impact richly valued tech stocks and other stock multiples. The key is finding the perfect equilibrium —economic deceleration that keeps inflation in check and aligns with the Federal Reserve's rate-cut trajectory without cliff-edging into a hard landing scenario. It's akin to the Goldilocks scenario, where everything needs to be pinpointed for the market's optimal performance. Oil market The oil prices plunged, racking losses between 3% and 4% after Saudi Aramco significantly reduced official selling prices for its crude oil for February delivery across all markets. Weak demand fundamentals influenced this decision in the global physical oil market. While the price cuts were widely anticipated, they turned out to be larger than analysts had forecasted. Asia refiners were applying pressure for competitive cargoes from Saudi Arabia, which were at a premium compared to crude oil supplied from other regions. This move by Saudi Aramco is also interpreted as an effort to regain lost market share amid steep production cuts implemented by OPEC+. Non-OPEC supply, particularly from the US, has filled the void of reduced OPEC+ production.

European markets head lower after mixed US jobs report. Inflation dominates in the week ahead. Fourth quarter earnings season kicks off this week. Equity markets have continued to struggle as we kick off another week afresh, with European and Asian stocks heading lower once again. Friday's US jobs report brought fresh concerns over the likeliness of the Fed to cut rate in March as markets have been widely anticipating, with a hot payrolls figure coming alongside a higher wage growth reading. However, the breakdown highlighted that much of that job growth came from those taking on part-time work, with full time jobs moving sharply lower. With a sharp decline in the ISM services PMI, job growth propped up by part-time roles, and a higher unemployment rate, we have seen markets return to the view that March will see the Fed commence their easing cycle. This week brings a major focus on inflation, with tonight's Tokyo CPI figure kicking off a period that also sees Australian, US, and Chinese consumer prices reported. Coming at a time where markets remain under pressure over fears that we may see the Federal Reserve push back over the current trajectory expected by markets, the ability to maintain the downward trajectory for inflation is key to the health of the market. The commencement of the fourth quarter earnings season brings a fresh source of directional bias for markets, with traders watching closely for early signs over US consumption in the festive period. The overreliance on big tech highlights the importance of a strong showing this quarter, with AI earnings once again likely to dominate as traders attempt to gauge the potential size and growth rate of this new innovation. This week will be dominated by the big banks, with many hitting long-term highs as concerns of a hard landing ease. This could allow them to save money as funds set aside for bad loans are freed up. With a soft landing allowing the Fed to cut rates at a slower pace, it could be the banks that benefit from a more hesitant approach from Powell & co. Nonetheless, with many banks sitting on massive unrealized losses thanks to the unexpected surge in bond yields, the typical view that banks want higher rates has been challenged over recent years.

XAU/USD Current price: 2,029.70 A better market mood undermined demand for the US Dollar in the American session. Investors await a United States inflation update and lift bets on a March rate cut. XAU/USD sees a limited bullish potential, has room to pierce the $2,000 mark. The US Dollar came under selling pressure during American trading hours, helping XAU/USD trim a good part of its early losses. The bright metal trades around $2,030 a troy ounce after falling to $2,016.61, its lowest since mid-December. Financial markets recovered their optimism with Wall Street's opening, as investors resumed betting the Federal Reserve (Fed) would cut rates as soon as March. Furthermore, a report from Bank of America indicates its analysts believe the central bank may begin tapering the massive Treasury holdings by the same time. Government bond yields retreated, with the 10-year Treasury note currently yielding 3.97%, down 6 basis points (bps). The 2-year note offers 4.31%, down 7 bps. Stocks, in the meantime, trade mixed. Most United States (US) indexes stand in the green, but the Dow Jones Industrial Average is down 35 bps or 0.09%. Market participants await a US inflation update. The country will release the December Consumer Price Index (CPI) next Thursday,  foreseen at 3.2% YoY, above the previous 3.1%. The core annual reading, on the contrary, is expected to ease to 3.8% from 4% in November. XAU/USD short-term technical outlook The daily chart for XAU/USD shows that the risk skews to the downside. The bright metal trades below a flat 20 Simple Moving Average (SMA) while the 100 and 200 SMAs converge around $1,962 with modest upward strength. The Momentum indicator turned flat and consolidates around its 100 level, while the Relative Strength Index (RSI) indicator offers a bearish slope at 49, anticipating another leg lower without confirming it. The 4-hour chart shows technical indicators bounced from their recent lows but remain within negative levels, limiting the odds for a firmer recovery. At the same time, XAU/USD battles with a directionless 200 SMA while the 20 SMA heads south above the current level, providing dynamic resistance around the $2,040 level. Support levels: 2,016.60 1,998.65 1,987.20 Resistance levels: 2,040.20 2,052.30 2,065.45

EUR/USD Current price: 1.0945 The focus this week will be on the United States Consumer Price Index. Mixed European data fell short of spurring directional movements. EUR/USD is technically neutral around 1.0940, bulls need to reconquer 1.1000. The EUR/USD pair trades uneventfully around its daily opening, trading in the 1.0940 price zone ahead of Wall Street's opening. The pair struggles for direction, confined to familiar levels since last Wednesday. Speculative interest assessed the previous week's United States (US) employment-related figures, which generally stronger than anticipated. The numbers spurred doubts about when the Federal Reserve (Fed) could proceed with the first rate cut, but in the end, investors maintained bets on a March cut, limiting US Dollar gains. This week, the focus will be on inflation, as the United States will publish the  December Consumer Price Index, foreseen at 3.2% YoY, above the previous 3.1%. The core annual reading, however, is expected at 3.8%, easing from 4% in November. The macroeconomic calendar has been quite busy during European trading hours, as Germany reported the November Trade Balance, which posted a seasonally adjusted surplus of €20.4 billion, beating expectations. Additionally, Factory Orders increased a modest 0.3% in the same month, below the 1.0% anticipated by market players. The Eurozone unveiled January Sentix Investor Confidence, which resulted in -15.8, while Retail Sales fell 0.3% MoM. The American session will bring no relevant data, although some Fed speakers will be on the wires. EUR/USD short-term technical outlook The daily chart for the EUR/USD pair shows it remains pretty much neutral for a fourth consecutive day. The 20 Simple Moving Average (SMA) maintains its bullish slope but acts as dynamic resistance around 1.0970. The longer moving averages, in the meantime, remain directionless, far below the current level, while technical indicators head nowhere around their midlines, reflecting the absence of directional interest. In the near term, and according to the 4-hour chart, EUR/USD is also neutral. The pair trades around a flat 20 SMA, while a directionless 200 SMA provides intraday support at around 1.0920. Finally, technical indicators are flat around their midlines, in line with the absence of a clear directional interest. Support levels: 1.0920 1.0885 1.0840   Resistance levels: 1.0970 1.1015 1.1060

EUR/USD fluctuates near 1.0950 to start the new week. A negative shift in risk mood could make it difficult for EUR/USD to gain traction. 1.0920 aligns as a key support in the near term. EUR/USD managed to erase its daily losses after dipping below 1.0900 on Friday but closed the first week of 2024 in negative territory. The pair's near-term technical outlook fails to provide a directional clue in the near term and investors are likely to pay close attention to risk perception in the absence of high-tier macroeconomic data releases. Mixed macroeconomic data releases from the US caused EUR/USD to fluctuate wildly in the American session on Friday. After losing nearly 50 pips and dropping below 1.0900 with the immediate reaction to the December jobs report, the pair made a sharp U-turn and advanced to the 1.1000 area. Nonfarm Payrolls in the US rose by 216,000 in December. Although this reading came in better than the market expectation for an increase of 170,000, downward revisions to November and October prints caused the US Dollar (USD) rally to remain short-lived. Additionally, the Unemployment Rate held steady at 3.7% even as the Labor Force Participation Rate declined to 62.5% in December from 62.8%. Finally, the ISM Services PMI slumped to 50.6 in December from 52.7 in November, highlighting a loss of momentum in the service sector's business growth. US stock index futures trade in negative territory early Monday on escalating geopolitical tensions and fears over the debt crisis in China's property sector spilling into the broader financial sector. A bearish opening in Wall Street could help the USD stay resilient against its rivals in the second half of the day. The European economic docket will feature Retail Sales for November and business sentiment data for December. Earlier in the day, the data from Germany showed that Factory Orders increased by 0.3% on a monthly basis in November. This reading fell short of analysts' estimate for a 1% growth but failed to trigger a noticeable market reaction. EUR/USD Technical Analysis The Relative Strength Index (RSI) indicator on the 4-hour chart recovered toward 50, pointing to a loss of bearish momentum. EUR/USD, however, stays dangerously close to 1.0920, where the 200-period Simple Moving Average (SMA) is located. Below this level, 1.0890 (lower limit of the ascending regression trend channel) could act as next support before 1.0850 (Fibonacci 38.2% retracement of the latest uptrend). On the upside, 1.0980 (100-period SMA) could be seen as the first resistance before 1.1000 (psychological level, 50-period SMA) and 1.1050 (mid-point of the ascending channel).

Gold price meets with a fresh supply after Friday's post-NFP two-way volatile price swings. Diminishing odds for a more aggressive Fed policy easing exert pressure on the XAU/USD. A softer risk tone could help limit losses ahead of the US consumer inflation on Thursday. Gold price (XAU/USD) comes under some renewed selling pressure on the first day of a new week and drifts back closer to over a two-week low touched in the aftermath of the better-than-expected US monthly jobs data on Friday. The popularly known NFP report showed that the US economy added 216K new jobs in December as against the 170K anticipated and the previous month's downwardly revised reading of 173K. Additional details showed that the Unemployment Rate remained unchanged at 3.7% and the annual wage inflation, as measured by the change in the Average Hourly Earnings, climbed to 4.1% from 3.9% in November. The data points to a still-resilient US labor market and gives the Federal Reserve (Fed) more headroom to keep rates higher for longer, which remains supportive of elevated US Treasury bond yields and is seen undermining the non-yielding yellow metal. That said, the Institute for Supply Management (ISM) reported that business activity in the US services sector, which accounts for more than two-thirds of the economy, slowed considerably in December. In fact, the ISM Non-Manufacturing PMI fell to its lowest level since May and came in at 50.6 for December, down from 52.7 in the previous month. Adding to this, a measure of services sector employment plunged to 43.3 last week and registered its lowest reading since July 2020. This reaffirmed market bets that the Fed could start easing its monetary policy as early as March. Moreover, the current market pricing indicates a cumulative of five 25 basis points (bps) rate cuts for 2024, which holds back the US Dollar (USD bulls from placing fresh bets. Apart from this, a generally weaker tone around the equity markets might lend some support to the safe-haven Gold price. Meanwhile, the recent comments by Fed officials raised uncertainty over early interest rate cuts and might keep a lid on any meaningful recovery for the XAU/USD in the absence of any relevant market-moving economic data from the US. Richmond Fed President Thomas Barkin last Wednesday expressed confidence that the economy is on its way to a soft landing and said that rate hikes remain on the table. Dallas Fed President Lorie Logan noted on Saturday that the US central bank may need to continue raising its short-term policy rate to keep a recent decline in long-term bond yields from rekindling inflation. Traders now look to a scheduled speech by Atlanta Fed President Raphael Bostic for some impetus, though the focus will remain on the US consumer inflation figures on Thursday. Technical Outlook From a technical perspective, some follow-through selling below the $2,024 area, or over a two-week low touched on Friday, will expose the 50-day Simple Moving Average (SMA) support near the $2,012-$2,011 region. This is closely followed by the $2,000 psychological mark, which if broken decisively will be seen as a fresh trigger for bearish traders and pave the way for deeper losses. The Gold price might then accelerate the slide towards the $1,988-1,986 intermediate support en route to the December swing low, around the $1,973 area and the $1,962 confluence, comprising the 100- and 200-day SMAs. On the flip side, the $2,044-$2,045 zone now seems to act as an immediate hurdle, above which the Gold price could climb back to the post-NFP peak, near the $2,064 region. Any subsequent move-up might continue to attract fresh sellers and remain capped near the $2,077 area. That said, a sustained strength beyond will negate any near-term negative outlook and allow bulls to aim back to reclaim the $2,100 round figure.

US CPI inflation is the next big test for the US Dollar. Yen traders turn to Tokyo CPIs and wages for BoJ exit hints. China's inflation and trade numbers to impact broader sentiment. UK monthly GDP on tap amid recession fears. Will the US CPIs corroborate the market's implied Fed rate path? The US dollar staged a decent recovery during the first week of the year, with market participants scaling back some basis points worth of rate reductions expected by December, although the total number of rate cuts anticipated by investors is still way larger than the amount of rate cuts indicated by the Fed's December dot plot. At that gathering, the median dot for 2024 was revised down to 4.6% from 5.1% and Fed Chair Jerome Powell appeared more dovish than anticipated at the press conference following the decision. He said that rate increases are not the base case anymore and that the question now is "when will it become appropriate to begin dialing back?" With that in mind, at some point last week, investors were nearly fully convinced that a 25bps cut will be delivered in March and that interest rates should be lowered by 160bps by December. Now that number stands at around 140 and the probability of a March cut is down to around 70%. Next week, investors will stay locked in front of their screens in anticipation of the US CPI numbers for December, due out on Thursday. Inflation has come down quickly in recent months due to weaker goods prices and moderating costs of services, including travel, even as rent increases remained elevated. Headline inflation saw a faster slowdown than underlying price pressures as energy prices began drifting south in September, erasing nearly all the gains posted during the summer months. However, with the 2022 downtrend now dropping out of the year-on-year calculation, oil prices are close to their opening levels for 2023, which means that the y/y change has moved from well into negative territory close to zero. And with the headline CPI rate resting well below the core one, even if the latter softens a bit more, this means that there are risks for a rebound in headline inflation. Should this be the case, investors may further reconsider whether March is the appropriate time for a first rate reduction by the Fed, lowering the probability for that happening even further and scaling back more basis points worth of cuts for the whole year. Consequently, the US dollar could extend its recovery as Treasury yields edge higher. When will the BoJ take rates out of negative territory? Japan's Tokyo CPI and wage data, due out on Tuesday and Wednesday respectively, may also attract special attention next week. At its December gathering, this Bank decided unanimously to keep interest rates untouched at -0.1% and to stick to its yield curve control policy framework that places an upper bound of 1% for the 10-year Japanese government bond yield as reference. With the Bank giving no signals that the era of ultra-loose policy conditions is nearing its end, next week's releases can very well upset opinions on that front. The Tokyo CPI data for November revealed notable slowdowns in both headline and core consumer prices, with the latter rate hitting 2.3% y/y, slightly above the Bank's objective of 2%. Therefore, further cooling could point to a similar reaction in the national CPI data for the month and may suggest that Japanese policymakers are not in a rush to take interest rates out of negative territory, thereby further hurting the recently wounded yen. As for wages, they have accelerated to 1.5% y/y in October from 0.6%, but even if next week's data reveals that the positive trend continued in November, the Bank may prefer to wait for the outcome of the spring wage negotiations before ending the negative-rate era. In October, Japan's umbrella labor union, Rengo, said that they will demand hikes of at least 5%, which could take real wage growth into positive territory. Therefore, April seems a better choice for the BoJ to raise interest rates. Considering that the market expects the Fed to cut interest rates by around 140bps next year, this may allow the yen to stay in an uptrend mode against its US counterpart, even if the latest slide continues for a while longer. Will the outlook for the Chinese economy get gloomier? With China's official manufacturing PMI for December signaling contraction for the third straight month, investors who are concerned about the state of the world's second largest economy may now turn their attention to China's CPI and trade data for the last month of 2023. In November, China slipped further into deflation and although its exports improved, its imports slowed notably, suggesting weak demand. Therefore, should this week's data corroborate...

From FX weekly, USD/JPY completed target at middle 143.00's from the open at 140.97. Highs traded to 143.88. USD/JPY's range trades from 144.03 to 143.53. Next week shorts target 142.54 then 142.04. JPY cross pairs all trade above most vital levels and holds USD/JPY downside progress. Overbought NZD/JPY and AUD/JPY will lead the way lower next week. GBP/JPY shorts must break 181.96 to target easily 182.29 then 180.67. EUR/JPY break 157.45 targets low 156.00's and CAD/JPY 107.48 targets middle 106.00's. EUR/USD massive supports are located at 1.0897, 1.0892 and 1.0874. If the past is prologue to EUR/USD's traditional trends from 1998 -2015 and 2014 to 2023 then EUR/USD achieves its significant low in January and trends higher for the year. EUR/USD dropped 146 pips for January. EUR/USD ranges from 1.0897 and 1.0892 to 1.1061. The 5 year average is located at 1.1158. We're long for next week to target 1.1022. GBP/USD 2 big lines above 1.2785 and the 5 year average at 1.2832. The 5 year average is safe and won't break next week. Overbought begins at 1.2736. GBP/USD ranges from 1.2585 and 1.2597 to 1.2785. AUD/USD trades from 0.6781 to 0.6652. Above 0.6781 trades overbought while 0.6652 s expected to hold next week. EUR/AUD higher must break 1.6389. Longs hold for next at 1.6180's. From Fx Weekly, GBP/AUD break above 1.8760 traded to 1.8863. Target completed for roughly 200 pips. Shorts target a break at 1.8770. Oversold GBP/NZD and EUR/NZD traded to 2.0300's highs and 1.7541 from 2.0100 lows and EUR/NZD 1.7300's. Overall Currency markets trade fairly neutral as we wait for a better price determination for next week longs and shorts.