The Euro traded in a wide range yesterday and we saw the single currency reaching as high as 1.0970 level before to reverse sharply lower.
From a technical standpoint, and looking at the daily chart, the pair has failed below 1.0990 peak, which keep the lower highs / lower lows structure from 1.1060 level intact.
Actually, the pair is trading near the hourly support, which stands at 1.0850 level and traders should watch this level carefully, as a breakdown below it is likely to send prices further lower towards 1.0800 psychological support.
In the near-term, our view is flat and we should wait for either a break above 1.0900 or below 1.0800 level before to define the next leg in this pair.
To conclude, the pair remain bearish in the med-term, but regarding the short-term price action, we believe that pair should see some additional volatility as far as 1.0770 low holds. Otherwise, a break this daily support should switch the current outlook from neutral to negative.
The British pound continue to head lower as the downside pressure has increased.
The Sterling remain one of the weakest currencies in the FX Market and we expect this weakness to continue as the divergence between BoE and the FED monetary policy has widened very significantly.
Technically, the pair succeeded to break below 2015 low which stands around 1.4530 level, and we saw a weekly close under this level, which cleared the way for further decline towards 1.4300-1.4200 zone in the next weeks.
In the flipside, the nearest resistance level is located at 1.4600 level, and only a daily close above this level will warn about a potential recovery in the near-term.
Otherwise, bearish pressure is likely to remain strong.
The pair kept on rising as Oil sank to 12 year-low during yesterday.
The bullish structure still intact, and since 1.3815 lows, we have seen a series of higher lows /higher highs, reinforcing the bullish outlook.
As of now, the pair is trading inside a major resistance zone seen in the weekly chart between 1.4185-1.4350 levels, from where we expect traders to begin booking profits, which may stop the current rally in the near-term.
Momentum indicators are clearly overbought, and the upside potential is limited. Consequently, our near-term view has turned to neutral while the med-term outlook is strongly bullish.
In the hourly chart, 1.4050 level is considered as the bullish pivot and only a daily close below this level, will send the pair into a larger correction to the downside.
The Australian Dollar traded sideways and found strong support near 0.6900 psychological support, which coincide with the 2015 lows.
Regarding the near-term price action, the view remains bearish as far as 0.7075 peak is intact.
Moreover, chasing weakness from the current levels is likely to be dangerous as the pair is oversold in the hourly chart.
Ideally, a retracement higher in the direction of 0.7000 level should fresh selling pressure.
While a daily close above 0.7075/07095 zone, will confirm a bullish reversal in the hourly chart.
USD/JPY bounced in the beginning of this week near 116.00 psychological support.
The pair has rallied during yesterday and succeeded to reach as high as 118.00 level, which represent a former resistance line and is likely to play as a strong resistance by now.
Looking at the hourly chart, the pair is stuck in a short-term range between 118.00 level in the upside and 117.20 in the downside, and should keep trading sideways until we see a clear break outside of this band.
To summarize, the trend has turned bearish in the near-term and as far as 119.70 peak is holding, downside risks are likely to persist and any recovery is likely to be short-lived.
The yellow metal showed some signs of weakness near the daily resistance level, which stands at 1110$ per ounce.
Currently, we believe that the near-term is flat and a break above this resistance line will clear the way for a big reversal in the daily chart that can reach as high as 1120 followed by 1135$ in extension.
Looking at the hourly chart, gold is trading near an hourly support located at 1092 and a break below this level should prices lower towards 1085-1079$ zone, from where we should see new buyers.
Our view is flat in the near-term, and we prefer to wait for price action to develop before forecasting the next move in gold.
In the med-term, gold remain bearish as far as 1191 peak is intact.
The New Zealand Dollar did a shallow bounce yesterday and failed to overtake 0.6580, which is considered as the hourly bearish pivot in this pair.
By now, the trend remains bearish in the hourly chart, and we expect the pair to remain under pressure as far as 0.6680 peak still intact.
Consequently, any rebound below this peak is likely to be considered as a -dead cat bounce- and we may see new sellers for another leg lower towards 0.6490 level.
To conclude, our view in negative in this pair as far as 0.6580 high remain intact. In the opposite side, a daily close above this resistance will call for a larger correction before the bearish pressure resume.
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