The Euro fell yesterday as we began to see some signs of decrease in the Bullish momentum after the single currency has reached a major resistance around 1.1350 level.
Technically, prices broke below a strong support level at 1.1160 and dropped to as low as 1.1127 level before to bounce back again. As of now, we believe that we should see another leg lower in the Euro before the bullish trend to resume.
Meanwhile, we expect the Euro to rise momently before to find strong resistance around 1.1195-1.1210 zone.
In addition, 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.
Consequently, traders should focus on 1.1160 support today. In the flipside, an hourly close above 1.1230 will clear the way for another leg higher.
To conclude, the Euro remains bullish above 1.1060 level, but the short-term price action is calling for a correction lower in the next hours.
Technically, our view was neutral on GBP/USD in the short-term.
The British pound was trading sideways between 1.4380/50 zone in the downside and 1.4550/70 in the upside.
Consequently, we prefered to wait for a clear break outside of this zone before taking new trading decisions. Looking at the hourly chart, we can see that bears took the control of this pair, especially after breaking below 1.4350 low.
In addition, the med-term trend remains bearish in this pair as far as 1.5240 peak is in place, which keeps the upside potential limited in this pair.
Traders have to wait for futhe daily close to confirm a breakdown below the recent range zone. A break below the mentioned zone should give us the next direction in the near-term.
In sum, the Sterling is likely to stay under pressure as far as 1.4570 peak is in place.
The pair managed to dip below 1.3785 support level, before to bounce back strongly from 1.3705 support level.
As of now, we expect the pair to keep heading north towards 1.3965 resistance level, from where we expect new sellers to appear.
Technically, downside risks are likely to persist as far as we did not see a clear break of 1.4000 psychological barrier. In the meantime, if the pair succeed to bounce, and confirm a break above1.3880 peak, then the recent correction can be over in this case.
To summarize, a daily close below 1.3780 support will send prices into another leg of weakness and February low is likely to be tested again, while a break above 1.3880 will confirm that this downside correction has ended and the bullish trend in the weekly chart is likely to resume.
The Aussie continued to rise as expected after breaking above 0.7150 resistance level.
Looking at the biggest picture, AUD/USD still negative as far as prices keep trading below 0.7325/80 zone, but looking at momentum indicators, we believe that a bullish reversal cannot be ruled out in the coming days.
Surprisingly, the pair failed to overtake 0.7180 resistance level and dropped below 0.7100 mark, which keeps the short-term outlook unclear.
Currently, we expect the pair to keep trading sideways as far as 0.7060 low is in place. In the other side, a break below this support will clear the way for fresh selling pressure.
In the other side, a daily close above 0.7180 will send prices higher towards 0.7220 peak.
USD/JPY has reached the resistance zone mentioned in yesterday’s report.
This resistance zone stands between 114.30 and 115.00 levels and should play as a strong barrier in the near-term.
Actually, we believe that prices should fall in the direction of 113.60-113.30 zone before to bounce again.
The outlook is neutral in this pair, as the daily trend remains bearish below 117.50 peak while the weekly trend still calling for further gains over a med-term horizon.
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.
The yellow metal fell sharply from 1260$ resistance level and prices have re-tested the former weekly resistance located at 1190$ per ounce.
Actually, gold remains bullish in the daily time frame and should remain supported as far as 1145 low is in place.
Considering this, we expect strong buyers to appear around 1190 level and a bullish pullback is likely to happen in the next hours.
The nearest support level stands at 1180$ and only a break below it will warn about a deeper correction to the downside.
To conclude, the trend has changed to bullish. In addition, as far as prices remain well supported above 1145 low, upside pressure should continue.
The New Zealand Dollar traded lower yesterday after bears managed to protect 0.6750 peak.
Technically, the trend remains bearish regarding a med-term basis, which keeps the kiwi under pressure.
From a technical standpoint, we need a clear break above 0.6750 to confirm a bullish reversal in this pair. Otherwise, the technical picture will remain negative.
For today, traders should watch 0.6580/60 support zone, as a break below it will bring a new bearish signal in the near-term and can trigger a selloff in the pair towards 0.6525 level.
To conclude, we prefer to stay away by this moment until we see a clear confirmation in the next days.
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