The euro keep trading sideways in the near-term and by now nothing has changed in our view.
From a technical standpoint, the pair is trading near 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.
Finally, the focus should be on 1.0960 level in the upside as it represents the bearish hourly pivot and only a break above it will confirm a bullish reversal in the short-term.
The British pound succeeded to break above 1.4042 resistance level in the hourly chart, which is a strong signal about a potential bullish reversal in the near-term.
The pair showed a bullish divergence in the RSI indicator around 1.3840 low. In addition, the pair bounced from a key Fibonacci retracement (61.8%) located around 1.3900, which keeps the view positive in the near-term.
As of now, we believe that the pair should do another leg higher towards 1.4120-1.4165 in the next hours as far as 1.3910 low is in place.
Consequently, traders should be aware that the short-term trend has changed and 1.4040 former resistance has become support by now.
USD/CAD did an attempt to break above 1.3500 psychological barrier but failed, as bearish pressure remains intact.
Currently, we maintain our negative view as far as 1.35 peak is in place and we will focus on 1.3385 level in the downside, as a break below should clear the way for additional decline in the direction of 1.3270
In the flipside, a break above 1.3500 peak will expose 1.3550 level during the next days.
Finally, the Australian Dollar succeeded to overtake 0.7250 resistance level after many attempts.
Looking at the daily chart, the trend has changed to bullish and we expect prices to continue higher towards 0.7390 level. Meanwhile, we can see an intermediate resistance level at 0.7330 level.
We will focus on this level today following by 0.7390 as it represents a major resistance in the weekly chart.
In the flipside, as far as 0.7200 low is in place our view is likely to remain unchanged and a significant move to the upside can occur especially if we see a daily close above 0.7390 peak.
The pair traded in a choppy range yesterday and prices turned down from 114.50 resistance level as mentioned in yesterday’s technical report.
The pair fell to as low as 113.20 level, which coincide with a former resistance level (turned support) before to bounce back again.
As of now, the trend remains bullish in the hourly chart and all eyes are on 114.90 peak, which represents a major resistance in the daily chart and the neckline of the double bottom pattern seen from 111.00 low.
However, we need to wait for a break above 114.50 level to confirm another leg higher in this pair. Otherwise, we can see a deeper correction lower before the bullish trend to resume.
Finally, we prefer to wait for either a break of 114.50 in the upside or 113.20 in the upside before to forecast the next move in this pair.
Technically, Gold continue to trade sideways in the near-term between 1248 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 1211 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 trend line drawn from 1308 peak. In the meantime, we have seen a valid bullish pullback from 1190 former resistance (new support) which keeps the pressure to the upside.
Consequently, we believe that another rally is likely to happen in the coming days and February high around 1264$ can be targeted, while a daily close below 1211 low is likely to weaken this positive view.
The New Zealand Dollar jumped during the U.S trading session, which keeps the near-term view neutral to slightly bullish.
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.
Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.