EUR/USD

The Euro has reached a major resistance at 1.1350 as mentioned in last week technical report.

Currently, the daily trend remains bullish as far as prices keep trading above 1.1160 level and consequently, bulls are likely to keep pushing prices higher in the next days.

In the meantime, a short-term correction cannot be ruled out and can see new buyers around 1.1210-1.1160 zone.

In the other side, a daily close below 1.1160 support should bring a bearish signal in the hourly chart and can send prices to as low as 1.1060 area, before the bullish trend to resume.

In addition, momentum indicators are clearly in the overbought territory, which increase the probability of a correction during the beginning of this week.

In extension, a daily close above 1.1350 level will trigger another acceleration higher towards 1.1490/1.1500 zone.

Support: 1.1210-1.1160-1.1080

Resistance: 1.1325-1.1350-1.1490

GBP/USD

The British pound traded sideways by the end of last week as prices failed to break above 1.4550 resistance level after several attempts.

Technically, the med-term trend remains bearish in this pair as far as 1.5240 peak is in place. While in the short-term, the pair is trading sideways between 1.4350 level in the downside and 1.4550 in the upside, which keeps our view neutral by this moment.

Traders have to wait for further price action to develop before taking new trading decisions in this pair. A break outside of the mentioned above zone should give us the next direction in the near-term.

Consequently, we prefer to wait for a clear break during the week ahead before assessing investors sentiment towards the Sterling.

To conclude, the med-term trend remains bearish in this pair but traders should keep in mind that a bigger correction to the upside can be seen before another plunge in cable.

Support: 1.4440-1.4375-1.4350

Resistance: 1.4550-1.4590-1.4665

 

USD/CAD

The pair remains under pressure as the recent weakness seen in the U.S dollar can represent a big obstacle for the pair in the coming days.

Technically, downside risks are likely to persist as far as we did not see a clear break of 1.4000 psychological barrier. Moreover, the positive signal should only come with a daily close above 1.4100 mark, otherwise, we can see further decline in this pair.

Looking at the hourly chart, the pair is testing an important support zone located between 1.3830-1.3785 zone and we may see a short-term bounce from there.

A daily close below this zone, will send prices into another leg of weakness and February low is likely to be tested again.

In the flipside, a break above 1.4100 level will confirm the end of this downside correction.

Support: 1.3830-1.3785-1.3705

Resistance:  1.3965-1.4100-1.4160

 

AUD/USD

The Aussie bulls managed to protect 0.7000 psychological level, which keeps the short-term slightly bullish.

In the biggest time-frames, the trend remains bearish below 0.7325 peak, while in the hourly chart 0.7120/50 zone represents the selling area and prices should rally if we see a break above it in the next days.

The best strategy is to wait for an hourly close above this resistance to confirm a bullish reversal in the near-term.

In this case, 0.7250 is likely to be the next level of interest. Conversely, if prices fall below this resistance zone, then a re-test of 0.7000 lows can be seen.

To summarize, we will focus on 0.7120/50 zone ahead of RBA meeting minutes on Tuesday. A hawkish stance from the central bank can be the catalyst for an acceleration to the upside.

Support: 0.7000-0.6970-0.6917

Resistance: 0.7120-0.7150-0.7216

 

USD/JPY

USD/JPY traded in line with our estimates and managed to reach the weekly target of 111.00 before to bounce strongly.

Looking at the big picture, 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 110.96 level.

As of now, we believe that prices should trade higher in the next hours and we can see the pair testing 114.30-115.00 zone before the decline resume.

Momentum indicators are clearly oversold, which give more credibility to this short-term retracement expected.

Finally, and from a swing trading perspective, the pair is likely to stay under pressure below 117.50 peak and only a break above this level will confirm a bullish reversal.

Support: 112.55-111.00-110.50

Resistance: 113.70-114.27-115.00

GOLD

The yellow metal jumped to as high as 1263$ per ounce after bulls overtook a big resistance around 1191$.

Actually, gold is bullish in the daily chart and we believe that buying the dips is ideal instead of selling rallies.

Meanwhile, we expect gold to fall in the coming hours towards 1221-1212 zone before we see another wave of strength.

After last week close, we expect the yellow metal to continue to rise towards 1280$ per ounce but in the same time, we are seeing a short-term retracement first.

To conclude, the trend has changed to bullish and traders have to be aware that the current recovery should be considered as a bullish reversal in the med-term instead of a temporary correction.

Support: 1221-1212-1191

Resistance: 1280-1307-1345

NZD/USD

The New Zealand Dollar was very choppy during last week and we prefer to stay away from this currency by the time being.

Technically, the trend remains bearish in the daily chart, while the outlook is flat in the short-term.

Consequently, we need a clear break above 0.6750 to confirm a bullish reversal in this pair. Otherwise, the technical picture will remain unclear.

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.

Support: 0.6625-0.6560-0.6525

Resistance: 0.6680-0.6750-0.6880

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