The Euro traded in a wide range during last week as both bulls and bears does not want to throw the sponges yet.
Looking at the hourly chart, we can see that the single currency is trading sideways inside a 200pips range.
Consequently, the short-term outlook is unclear, and traders should wait for a break of either 1.0985/1.1000 zone in the upside or 1.0800 psychological support in the downside before to have a strong confirmation about the next move in this pair.
In the med-term, the trend remains bearish below 1.1500 peak, and as far as prices keep trading below this level, the Euro is likely to remain under pressure.
The British pound continued its rout as bears succeeded to push prices below 1.4300 support level, which reinforces our negative view over the med-term.
Conversely, the near-term price action has begun to show some signs of bullish reversal as momentum indicators deepened in the oversold territories.
Hence, we believe that the pair may found a temporary low during the beginning of this week, and should trade sideways to higher, into short-term correction before the bearish trend renew.
In addition, 1.4220 level represents a strong support level and can give the pair some boost in the next hours.
In the other side, if the pair manage to bounce as mentioned above, then we will look for as high as 1.4355-1.4380 zone before to see strong sellers entering the market again.
The pair strengthened further by the end of last week as Oil sell-off hits the Loonie.
Moreover, we have seen the Canadian Dollar falling to as low as 1.4610 level against the U.S Dollar overnight, which is considered as the lowest level since December 2003.
Actually, we believe that prices has reached a major resistance near 1.4600 psychological level and we may see a correction lower in the next hours as profit taking is likely to begin.
Consequently, our view has changed to neutral in the short-term and traders should focus on 1.4420 level as it represent an important hourly support in this pair, and prices are likely to remain steady above this low.
To conclude, we expect the pair to begin losing its bullish momentum gradually. In the same time, a daily close below 1.4420 will confirm a potential bearish reversal.
The Australian Dollar has printed fresh yearly lows as Aussie weakened significantly after breaking below 0.6900 support, which coincide with 2015 lows.
As of now, we believe that the Aussie gave another signal of weakness during last week, and technically, another extension lower is active by now and we can see the pair falling to as low as 0.6750 level in the next days.
If the pair manage to rebound this week, then we will focus on 0.6915-0.6935 zone, from where we expect heavy sellers to appear and the pair to turn lower again.
To summarize, our view remain strongly bearish in this pair and we are seeing that the upside potential is very limited as far as 0.7000 peak is intact.
USD/JPY keep fighting to protect 116.20 lows as a break below this level should trigger a big sell-off in the pair.
The pair fell to as low as 116.50 level on Friday before to bounce back above 117.00 mark again.
We believe that this recovery is likely to be short-lived and regarding the near-term price action, we expect the pair to trade slightly higher in the coming hours towards 117.60-117.85 zone before to see a reaction lower.
Moreover, our view still negative in USD/JPY as momentum indicators still calling for further weakness.
Finally, 119.70 represent the hourly bearish pivot, and our view is likely to remain unchanged below this level.
The yellow metal showed clear signs of strength as prices rebounded from a critical Fibonacci retracement.
Gold has lost exactly 61.8% of its recent recovery from 1046 lows to 1113 peak. This level stands at 1072$ per ounce and we have seen a strong reversal from this level, which gave us a confirmation that the bullish trend in the hourly chart is still alive.
Currently, we expect gold to trade higher in the direction of the hourly resistance line, located at 1095$.
In other side, the hourly bullish pivot stands at 1072$ actually, and as far as this level holds, another rally towards 1113 peak cannot be ruled out.
To conclude, gold is bullish in the hourly chart, and a re-test of 1095$ resistance level should be seen very soon, while a daily close below 1072 support level will put gold under pressure again.
The New Zealand Dollar extended its losses and fell below 0.6400 psychological support last Friday to reach as low as 0.6380 during the U.S trading session.
As of now, the trend remains bearish in the hourly chart, and we expect the pair to remain under pressure as far as 0.6590peak still intact.
Consequently, any rebound in this pair during this week should face strong selling pressure for another leg lower towards 0.6290 level in the next days.
Near-term resistance zone stands between 0.6485 and 0.6510 levels, and a break above these levels will expose 0.6590 peak.
In addition, a daily close above this peak will confirm a bullish reversal in the short-term. Otherwise, downside risks are likely to remain strong.
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