The euro began the week with a bearish tone as the single currency continued its decline. The pair fell to as low as 1.0857 level before stabilizing around 1.0875.
By now, the pair approaches a major support zone, which stands between 1.0850 and 1.0810 levels. The first level represents the 61.8% Fibonacci retracement of the entire rally seen from 1.0520 low, while the second one coincide with a strong support from January.
In addition, momentum indicators are sitting in the oversold territory, which reinforce the possibility of a short-term bounce. Consequently, we believe that the Euro may continue to fall in the next hours towards the mentioned above support zone, before to see strong demand in this pair.
The Sterling has ended last week near its lowest level in more than five years.
Looking at the technical picture, the pair has reached 1.3845 support level yesterday as shown in the weekly chart and from where we expect some buyers to appear.
In the near-term, 1.4043 represents the bearish pivot and should cap any attempt of recovery in the next hours.
Meanwhile, the RSI indicator showed a bullish divergence in the hourly chart and as of now, if prices manage to stabilize above yesterday lows, then we expect a short-term bounce towards 1.4040 to happen.
Overall, our view remains strongly bearish regarding a med-term basis as far as prices keep trading below 1.4400 psychological barrier. Moreover, we can see as low as 1.3650 level in the coming weeks. However, we began to see some signs of recovery in the hourly chart, which can lead to an upside move in the near future before the decline resume.
USD/CAD kept on falling due to the recent recovery seen in Oil prices coupled with a strong upside move in the commodity market.
Technically, we are looking for further weakness in the pair and we can see another sell-off in the direction of 1.3430 before a reaction to the upside.
In the meantime, we expect the bearish momentum to decrease gradually and a short-term bounce is likely to happen.
In the flipside, 1.3650 is the hourly resistance and as far as this level hold, the outlook will remain negative in the near-term.
The Australian Dollar keep fighting for a clear direction in the near-term after failing to overtake 0.7250 resistance level for the second consecutive time.
Looking at the hourly chart, traders should focus on 0.7110 support level and as far as this level holds, the view will remain positive in the short-term, while a break a breach of this support should expose the daily support at 0.7080 level.
From a med-term standpoint, AUD/USD remains negative below 0.7325/80 zone and we need a daily close above 0.7250 first, in order to confirm another rally in the pair. Otherwise, the near-term will remain neutral.
The pair traded in line with our expectations yesterday and managed to bounce from the bullish zone located between 112.50 and 112.00 levels.
As of now, all eyes should be on 114.00, followed by 114.90 peak in extension from a swing trading perspective.
The reversal double bottom pattern that emerged around 111.00 level remains valid by now, but a daily close above 114.90 level is needed to have a strong confirmation.
From an intraday standpoint, the focus is on 113.25 hourly resistance, as a break above it will reinforce the bullish outlook in the short-term.
Technically, Gold continue to trade sideways in the near-term between 1240 level in the upside and 1200 in the downside and as far as this situation continue, the short-term view will remain neutral to slightly positive.
In the hourly chart, the nearest support is located at 1215 level and prices should remain well supported above this level.
While In the daily chart, gold remain positive as far as 1190 low is in place. Moreover, prices broke above the bearish trendline drawn from 1308 peak, in the meantime we have seen a valid bullish pullback from 1190 former resistance (new support).
Yesterday, gold did an attempt to stabilize above 1240 level but we still need further confirmation that should come with a daily close above this level today.
Consequently, we believe that another rally is likely to happen in the coming days and February high around 1264$ can be targeted.
The New Zealand Dollar has turned neutral again in the hourly chart, despite the fact that prices managed to print new highs above 0.6750 peak, which may signal another leg higher in the next days.
Currently, we need to wait for a weekly close above 0.6750 to confirm this possible breakout, otherwise the neutrality will keep surrounding.
Technically, the pair was stuck between a 200 pips range between 0.6560 in the downside and 0.6750 in the upside. Meanwhile, and looking at momentum indicators, we believe that prices are set for a bullish breakout in the next days especially if the pair keep trading above 0.6560/40 zone.
In the flipside, a daily close below 0.6560 support will bring the bearishness back.
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