The Euro has dropped during yesterday’s U.S trading session after reaching the daily resistance, which stands near 1.1195 level.
Technically, prices broke below a strong support level at 1.1160 and dropped to as low as 1.1118 level before to erase some of its losses during the Asian session, which kept us skeptical about this breakdown.
The daily trend remains bullish in this pair as far as prices keep trading above 1.1060 support level and consequently, the single currency is likely to stay steady in the next days.
Conversely, 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.
Meanwhile, traders should focus on 1.1160 support today. In the upside, an hourly close above 1.1230 will clear the way for another leg higher.
To conclude, the outlook is flat in the short-term, with a preference to the upside as per the daily trend.
Finally the British pound moved outside of its daily range, which was located between 1.4380/50 zone in the downside and 1.4550/70 in the upside.
Prices managed to exit this range from the lower side, which brought a strong bearish signal in this pair. Moreover, bears succeeded to maintain the control of this pair until the close, confirming a new wave of weakness in the next hours.
Consequently, we expect the pair to weaken further in the direction of 1.4230, while a daily close below this support will trigger a big plunge that can reach as low as 1.4080 zone.
In addition, the med-term trend remains bearish in this pair as far as 1.5240 peak is in place, which keeps the downside risks very strong.
To conclude, we believe that the Sterling is likely to remain under pressure below 1.4500 mark and may fall further in the coming sessions.
The pair jumped strongly yesterday from 1.3705 support level and managed to erase the entire daily losses.
Yesterday’s close was very significant but in term of technical levels, traders should wait for a clear break of 1.3880 resistance level today before to confirm a potential bullish reversal.
In addition, the view is likely to remain flat until we see a daily close above 1.3960/1.4000 zone.
Otherwise, prices may keep trading sideways to lower. Consequently, investors should be careful with this pair as we expect an increase in volatility today.
The Aussie failed to overtake 0.7180 resistance level and fell sharply yesterday, which kept us skeptical about the price action in the near-term.
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 all conditions are set for a bullish reversal in the coming days.
In the near-term, traders should focus on 0.7060 level as it represents the bullish pivot for this pair, and only a break below this level will put the pair under pressure again.
In the other side, if prices manage to break above 0.7180 level, then a rally towards 0.7240 is likely to happen.
USD/JPY is trading sideways in the hourly chart and looking at the equity market price action, we believe that this pair is likely to stabilize around 113.60-113.30 support zone before to bounce again.
If the pair succeed to protect 113.30 low, then we expect another leg higher in the direction of 115.25/50 zone before to see sellers.
The outlook is neutral in this pair, as the daily trend remains bearish below 117.50 peak while the hourly chart is bullish.
To conclude, 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 traded lower yesterday but we still believe that the low around 1190$ is likely to hold.
Gold remains bullish in the daily time frame and prices are trying to validate a bullish pullback from the former weekly resistance at 1190, which became support by now.
Traders should focus on 1217 resistance level in the near-term, as a break above it will confirm Monday lows and can send prices to as high as 1225$ per ounce ahead of FOMC meeting minutes later today.
The nearest support level stands at 1200$ and gold should stay steady above it.
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 keep fighting for a clear direction and our view remains neutral in this pair.
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 it represents the last chance for bulls to try saving the kiwi from another leg lower.
To conclude, we prefer to stay away by this moment until we see a clear confirmation in the next days.
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