The Euro traded lower during the beginning of the U.S trading session and we have seen a big sell-off to as low as 1.1160 level before to see a strong bounce in the single currency.
The pair succeeded to protect 1.1160 hourly support and rallied back above 1.1300 mark, reinforcing the bullish outlook in the near-term.
In the daily chart, the break above 1.1000 psychological barrier has changed the trend to bullish.
Consequently, the Euro should continue to rise as far as 1.1160 low is intact. The pair should do another attempt to break above 1.1330/50 resistance zone. If we see a rally above this zone, then the path is likely to be cleared for as high as 1.1490 in the next weeks.
In the opposite, only a daily close below 1.1160 level should send the pair into a deeper correction.
The British pound was choppy yesterday as bulls tried to push prices back above 1.4500 mark.
The med-term trend remains bearish in this pair as far as 1.5240 peak is in place. But looking at the short-term price action, we believe that prices should trade higher in the next hours, especially if we see a break above 1.4550 resistance level.
In this case, the next level of interest is located around 1.4590 level. In the flipside, 1.4440 level represents the hourly support and prices should stay steady above this low.
In sum, the med-term remains bearish in this pair but traders should keep in mind that a break above 1.4590 level in the near-term, should open the way for a big rally again.
The pair keep fighting for a clear direction in the short-term. Both camps failed to overtake the control of this pair yesterday.
Technically, we are seeing the recent drop from 1.47 peak as corrective only, and the bullish trend is likely to renew in the next days. But in the same time, and regarding a short-term view, we need to wait for a clear confirmation in the hourly chart, before to confirm the end of this correction.
A break above 1.4100 mark is likely to send the pair higher. Otherwise, prices will remain under pressure.
In the short-term, 1.3980/1.4000 represents the bearish zone in the hourly chart and as far as prices keep trading below this zone, the pair can fall to new lows.
In sum, our view remains bullish over the med-term but looking at the near-term price action, we expect this correction to continue until we see signs of recovery in the hourly/daily charts.
Aussie bounced from 0.7000 psychological level but still lacking momentum.
Regarding the daily chart, the trend remains bearish below 0.7325 peak, while in the hourly chart 0.7216 level represents the bearish pivot and prices should find strong resistance below this level.
Consequently, traders should wait for an hourly close above this resistance to confirm a bullish reversal in the near-term.
In this case, 0.7250 may be the next level of interest. Conversely, if prices fall below this level, then a re-test of 0.7000 lows cannot be ruled out.
To summarize, only a break above 0.7216 will reverse the bearish trend in the near-term and the pair is likely to rally to new highs.
Otherwise, bearishness is likely to persist.
USD/JPY fell sharply as expected after confirming a bearish head and shoulders pattern seen in the weekly chart.
The pair broke below its neckline located at 116.00 level, which triggered a big sell-off and we have seen a sharp decline to as low as 112.70 level.
From a technical standpoint, the pair is set for further weakness towards 111.10-110.50 zone in the next days.
Technical indicators have switched to bearish and momentum is calling for the south side.
By now, we believe that the pair should continue to move to the downside, especially if we end this week below 115.00 mark.
115.25 is seen as short-term bearish pivot and traders should chase weakness only in this pair as far as this peak is in place.
The yellow metal rallied to new highs as prices have confirmed a reversal in the weekly chart.
Currently, gold remain bullish in the daily chart and prices succeeded to break above 1191 resistance level.
Momentum indicators are calling for further strength in gold and we should see as high as 1220/1230$ per ounce in the coming weeks.
In the flipside, 1180$ is considered as the near-term support and the yellow metal is likely to remain well supported above this level.
From a swing trading perspective, the yellow metal should continue to strengthen at least until the end of the first quarter.
To conclude, the trend has changed to bullish in gold and traders have to be aware that the current recovery should be considered as a bullish reversal in the med-term instead of a -dead cat bounce-only.
The New Zealand Dollar traded higher during the U.S trading session after bulls managed to push prices above 0.6660 resistance level.
Technically, the trend remains bearish in the daily chart, while the outlook is flat in the short-term.
Moreover, we need a clear break above 0.6750 to confirm a bullish reversal in this pair. Otherwise, the pair should keep trading sideways to lower in the next days.
Our view is flat currently, and we will wait for a break above 0.6750 or below 0.6560 to confirm the next leg in this pair.
In sum, we prefer to stay away by this moment until we see a clear confirmation in the next days.
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