Looking at the daily chart, the Euro is trading inside a wide range that comes between 1.0710 and 1.0985 levels, which keep our view neutral over the med-term.
In the near-term, the trend has changed to positive as we have seen a break above 1.0900 mark. Consequently, traders should be aware that as far as 1.0850 low remain in place, the Euro will stay steady and should continue to trade higher in the next hours towards 1.0985/1.1000 resistance zone.
Moreover, if we see a break above this zone, then the single currency is likely to clear the way for a big rally in the near future. Otherwise, the neutrality will continue to dominate this pair.
In the downside, a breakdown of 1.0850 should weaken the current view, while a daily close below 1.0820 level will put the pair under pressure again.
The British pound did another attempt to overtake 1.4400 psychological barrier but failed as we saw big sellers entering the market around this level.
In the near-term, the trend has switched to flat, while in the med-term the British pound still strongly bearish.
In term of technical levels, traders should focus on 1.4225 level in the downside as it represent the bullish pivot for this pair in the hourly chart. A break below this level, will bring a confirmation that the recent recovery has ended and consequently the pair is ready for another leg lower. In the opposite, as far as this level holds, sideways consolidation is likely to persist in the next days.
As expected, the pair extended its losses for the second week in a row after bears managed to push prices below 1.4110 level.
The pair fell to as low as 1.3945 yesterday before to bounce strongly during the U.S trading session. Currently, the short-term trend is bearish but traders should be aware that we are looking at the recent drop as a corrective move only.
The med-term is bullish, and we are waiting for signs of recovery before to forecast the next move in this pair. From an intraday view, the focus should be on 1.4160 resistance level. If the pair succeed to end the week above this level then we expect an acceleration higher in the direction of 1.4325 critical resistance. Otherwise, bearish pressure is likely to remain unchanged and the pair can reach as low as 1.3875 level in the coming days.
The Australian Dollar followed our forecasts and traded higher this week after confirming a double bottom reversal pattern in the hourly chart.
The bullish confirmation came out with the break of 0.7045 and the pair rose to as high as 0.7140 level, from where we expect heavy sellers to appear. As of now, we believe that the pair is likely to trade lower as profit taking may hit the current upside move.
Hence, we are seeing another re-test of 0.7045 level in the coming hours before a new wave higher begins.
Our view is neutral by now, and we will wait for a break either above 0.7140 or below 0.7045 level to have more clues about the future price action in the near-term.
From a swing trading perspective, the pair remain bearish in the daily chart as far as prices keep trading below 0.7325 peak.
USD/JPY has confirmed the bullish reversal in the hourly chart as the pair managed to overtake 118.80 highs, bringing a strong signal of trend shift.
The pair flew overnight as Bank of Japan introduced negative interest-rates policy, which was the catalyst for the breakout higher.
Currently, our view has changed in the short-term, as we believe that the pair is set for a larger correction to the upside during the following days before to see sellers again.
By now, the path is cleared for an acceleration to the upside and we expect prices to continue higher towards 121.80/122.00 zone before to see any real resistance.
In addition, this view is valid as far as 118.50 low is in place.
The yellow metal showed some signs of weakness yesterday after prices has reached our final target around 1125$ per ounce.
Gold remain bullish in the daily chart and can break above 1128 peak to reach as high as 1136-1138 levels in the coming days.
Meanwhile, and looking at the waves structure, we believe that prices may fall to around 1100$ per ounce before to see new buyers.
In the short-term, the resistance zone stands between 1120-1123.50 levels and we can see a bearish reaction from this zone.
To conclude, gold is bullish in the daily chart, and is likely to remain strong in the coming days, but we expect a short-term correction to begin soon as far as 1128 peak holds.
The New Zealand Dollar bounced two consecutive times from 0.6425 low and jumped to as high as 0.6540 level, which represent a big resistance level in the hourly chart.
Technically, the trend remains bearish in the daily chart, and we expect the pair to remain under pressure as far as 0.6590peak still intact.
In the short-term, the pair is trading sideways between 0.6530/40 in the upside and 0.6425 level in the downside. Consequently, our view is neutral and we prefer to wait for the pair to exit this consolidation pattern in order to confirm the next move in the Kiwi.
In extension, if we see the pair breaking above 0.6570/90 zone in a daily basis, then traders should be careful as a potential bullish reversal can be in play.
In the downside, a breach of 0.6425 low will signal a bearish trend continuation.
In sum, we prefer to stay away from the Kiwi/Dollar until we see a clear break in the next days.
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