The Euro broke below 1.1100 psychological support yesterday, which opened another extension lower towards 1.1050/60 zone.
Technically, prices remain under pressure in the near-term as far as it keeps trading below 1.1180 peak in the hourly chart.
In the other side, the daily trend is bullish, and we are waiting for bulls to enter the market soon as prices have reached the 50% retracement of the last rally seen from 1.0780 lows.
Consequently, traders should wait for the weekly close to have a confirmation about the future price action. We believe that the downside is limited by now, as the pair should bounce in the next days towards 1.1180 level.
To conclude, the outlook has turned to flat and traders should wait for a daily close above 1.1180/90 zone to confirm that the recent correction has ended.
The British pound has lost bearish momentum and failed to break below 1.4250 support level.
Moreover, we have seen a double bottom pattern around this level coupled with a bullish divergence in the RSI indicator, which warned about a potential reversal.
Earlier today, prices another attempt to overtake yesterday’s low but again, we have seen strong demand around this zone and we expect a bullish reaction to happen soon.
In addition, a break above 1.4390 level should clear the way for 1.4410 followed by 1.4450 level.
To conclude, our view is neutral by this moment and only a daily close above 1.4515 peak will confirm a bullish reversal in this pair. Otherwise, downside risks are likely to continue.
Surprisingly, the pair rallied today as prices have respected 1.3640 support level.
As of now, trading this pair seems to be very tricky as Oil drama is likely to continue impacting the near-term price action.
In term of technical levels, traders should focus on 1.3910 in the upside and 1.3710 in the downside before to forecast the next leg in this pair.
The med-term trend is bullish but the near-term is flat, which keeps the view unclear and we expect further volatility during the next week until we see a clear break of the range mentioned above.
The Aussie reversed its previous gains from 0.7180 resistance level as we saw heavy selling around this level.
Prices did an attempt to break below 0.7080/60 zone but nothing is confirmed yet as we have to wait for a close below it to clear the way for further decline.
In the opposite, if the Aussie manage to bounce from this support zone, then we will wait for another rally towards 0.7180 peak in the next week.
Looking at the med-term picture, AUD/USD still negative as far as prices keep trading below 0.7325/80 zone.
In the near-term, the view is flat to slightly bullish and we prefer to wait for a clear break of 0.7180 or 0.7060 before to confirm the next direction in this pair.
USD/JPY weakness is back as prices succeeded to slide below 113.30 support level, which confirms a new wave of weakness.
From a swing trading view, as far as 115.50 peak is in place, the pair is likely to keep heading south.
The nearest support stands at 112.30 level followed by 111.90 zone and momentum indicators are still pointing for further decline in the pair.
Looking at the weekly chart, the pair is likely to stay negative below 117.50 peak and only a break above this level will confirm a bullish reversal in the med-term.
While in the near-term, the battle take place between 113.20 in the upside and 112.30 in the downside.
Gold broke above 1217 resistance level, which keeps the near-term trend bullish by this moment.
Previously, prices were stuck between 1217 level in the upside and 1200 level in the downside and we were waiting for a break outside of this zone before to confirm the future direction in the yellow metal.
Yesterday, we have seen a positive signal as prices overtook 1217 peak and rallied to as high as 1240 level before to decline again overnight.
As of now, we expect gold to find a strong demand around 1220-1215 zone and trade higher in the direction of 1245$ per ounce as per the weekly chart.
To conclude, gold is bullish as far as prices keep trading above 1180/1190$ per ounce and only a break below this zone, will warn about a deeper correction to the downside.
Nothing has changed in our view related to the New Zealand Dollar and we are waiting for price action to develop in order to forecast the next direction 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 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.
Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.