The Euro continued to decline after bears managed to push prices below 1.0800 psychological support.
Technically, the pair has reached the 61.8% Fibonacci retracement of the recent recovery from 1.0520 lows, this level stands at 1.0730 and can provide some support to the single currency in the near-term.
As of now, our view remain bearish, and looking at the hourly chart, we can see that the bearish pivot is located at 1.0840 , and as far as prices keep trading below this level, downside risks will persist.
Consequently, the pair should stay under pressure and if the pair dips below yesterday’s low, the next level of interest stands between 1.0685-1.0660 levels.
The British pound remain weak, as prices have respected the lower-highs/ lower-lows structure, which keep the pair bearish by the time being.
Prices did an attempt to break above 1.4845 resistance level, but saw a strong rejection by the bears around our selling zone, which were located between 1.4785-1.4805 levels.
Currently, the pair is heading towards 1.4600 support level and traders should look to sell rallies instead of buying the dips as far as 1.4845 peak still intact.
In the near-term, 1.4680-1.4696 zone represent the resistance zone and a break above it should send the pair higher into a larger correction. Otherwise, the pair will remain under pressure during the next hours.
The bullish pressure has resumed in this pair as bulls succeeded to preserve 1.3815 lows.
Prices broke above 1.3940 resistance level in the hourly chart, which brought the bullishness back to the table.
We believe that the short-term correction has ended, and prices are set for another wave of strength during the next hours.
Yesterday, the pair succeeded to break above 1.4000 psychological level, reinforcing our bullish outlook.
Actually, the near-term target stands at 1.4120 followed by 1.4170 in extension.
To conclude, the trend remain bullish in the med-term and we believe that the pair is likely to remain steady above 1.3815 level.
The Australian Dollar fell sharply as expected after we saw a daily close below 0.7207 support level.
Regarding the hourly chart, we can see that the nearest station stands at 0.7070 level, from where we expect the pair to do a temporary bounce before the decline resume.
Our view has turned bearish, and as far as 0.7215 peak remain intact, Aussie should continue its rout.
Consequently, traders should look to sell the pair on rallies in the next hours. From a risk/reward standpoint, a correction towards 0.7130-0.7145 zone will provide a good short opportunity.
Meanwhile, and from an intraday perspective, 0.7235 represent the hourly bearish pivot and our view is likely to remain negative below this peak.
USD/JPY has confirmed a bearish reversal in the daily chart, which keeps our view bearish in the near-term.
Currently, prices dropped below an important support level located at 119.05 level, which coincide with the 61.8% Fibonacci retracement of the recent recovery from 116.20 lows.
Consequently, we expect the pair to keep heading south towards the next important Fibonacci level at 117.98 level.
Actually, our view is bearish in the near-term, and traders should wait for retracement before to sell the pair again.
In sum, as far as 120.65 peak is holding, downside risks are likely to persist. In the meantime, USD/JPY is trading near a support zone, and a short-term bounce can happen in the coming hours.
The yellow metal remain steady in the short-term as prices held well above the yearly lows located at 1046$ per ounce.
As of now, we believe that the near-term trend has turned bullish and traders should focus on 1085-1089 zone, which represent a strong resistance zone in the hourly chart.
If gold manage to break above this zone, then another rally is likely to happen and we can see prices reaching as high as 1100$ per ounce in the next days.
In the flipside, a retracement lower should see buyers around 1068-1072 zone, for another extension higher, while a daily close below this support area will change this bullish outlook and the yellow metal should head south again by that time.
The New Zealand Dollar traded in line with our expectations and edged lower yesterday to reach the near-term target located at 0.6680.
Moreover, the pair extended losses below this major support level, which opened another extension lower towards 0.6580 level.
The trend has switched to bearish in the near-term, as the pair broke below the hourly support.
Consequently, we prefer to sell the pair on rallies, and traders should wait for a retracement in the direction of this former broken support, which will likely to play as a resistance in the next hours.
To summarize, our view in negative in this pair as far as 0.6775 peak remain intact, and only a daily close above this level will change our view.
The Dollar index strengthened as expected after prices succeeded to overtake 98.60resistance level.
In addition, the index has reached our near-term target, which stands at 99.30 level reinforcing our bullish outlook.
As of now, we expect further gains in the Greenback and we will look for a re-test of 99.80 hourly resistance in the coming hours.
Meanwhile, 98.05level represent the hourly bullish pivot and prices should remain steady as far as this support holds.
To conclude, the main trend remain bullish, and as far as the index keep trading above 97.20 support level in the daily chart, our view will stay unchanged.
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