The Euro managed to bounce sharply yesterday and has showed a strong bullish reversal signal during the U.S trading session.
Technically, the pair has jumped near the 61.8% Fibonacci retracement of the recent recovery from 1.0520 lows, as mentioned in our previous report and succeeded to break above the hourly resistance located at 1.0770 level.
As of now, our view has switched to positive. Moreover, the confirmation of this bullish reversal will come with a break above 1.0840 level.
Next level of interest stands at 1.0840, followed by 1.0855 and then 1.0890 in extension.
To conclude, we do not like to sell the pair from the current level and traders should wait for long opportunities above 1.0840 in the near-term, targeting as high as 1.0890 zone from where we expect to see a reaction lower.
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 succeeded to break below 1.4600 psychological 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, 1.4530 zone represent 2015 lows and we can see some profits taking around, which can send prices into a short-term correction.
To conclude, our view is heavily bearish and we remain sellers on rallies as far as 1.4815 peak holds.
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.
In addition, the pair succeeded to break above 1.4000 psychological level, reinforcing our bullish outlook.
Actually, the near-term target stands between 1.4170-1.4200levels, from where we expect the pair to stabilize, as momentum indicators are clearly overbought.
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 pair managed to break below the major support level, and the next level of interest stands at 0.7020 level.
Our view remain 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, we like to wait for a short-term retracement before to look for fresh selling opportunities.
The hourly bearish pivot is located at 0.7097 level, and prices may remain under pressure below this peak in the near-term.
USD/JPY extended its losses below 118.00 psychological support, which keeps our bearish view unchanged 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 116.20 in the next days.
Moreover, we will wait for a daily close below 118.00 level today to confirm a new wave of weakness.
In sum, as far as 119.70 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 spiked as expected, and has reached our daily target located at 1100$ per ounce.
As of now, we believe that the near-term trend has turned bullish and traders should focus on buy the yellow metal on dips as far as 1072$ low remain intact.
If gold manage to break above 1100$ resistance level then another rally is likely to happen and we can see prices reaching as high as 1110$ per ounce in the next days.
In the flipside, a retracement lower should see buyers around 1090-1085 zone, for another extension higher, while a daily close below this support area will warn about a deeper correction before the bullish trend to resume.
The New Zealand Dollar traded in line with our expectations and edged lower yesterday,which keeps the bearish pressure intact.
Moreover, the pair extended losses below a major support level located at 0.6680, which opened the way for another extension lower towards 0.6580 level.
The trend has switched to bearish in the near-term, as the pair broke below this 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 failed to continue its upside move, as profit taking appeared to be massive near 99.50 resistance zone.
As of now, we are seeing the current decline as corrective only, which will offer a new buying opportunity with a better price in the next hours.
As of now, we expect further weakness in the Greenback towards 98.50-98.10 zone, from where we expect the index to bounce strongly.
In addition, 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 98.05 support level our view will stay unchanged, while a daily close below this level, should reverse the current trend in the short-term.
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