The euro traded in line with our expectations as prices extended losses and managed to reach 1.1000 psychological support zone.
As of now, we believe that the pair has entered a critical zone as we expect strong buyers to appear and a bounce in the short-term is likely to happen.
In extension, if prices continue to fall and slide below 1.1000 mark, then we expect to see as low as 1.0950, before a big recovery in the next days.
The trend is bearish in the short-term until we see a break above 1.1140 resistance in the upside, while a daily close above 1.1190 will confirm that the correction from 1.1370 peak has ended, otherwise, the Euro may continue to fall to new lows.
Yesterday, the Sterling faced its worst trading day in a year against the U.S Dollar, falling as much as 2% during the European trading session.
As expected, the pair has dropped further as per the dominant trend. We have seen a downside continuation after a bearish gap and prices succeeded to break below 1.4230 daily support, which led to a big sell-off.
Currently, the outlook remains strongly bearish in the British pound amid (brexit) fears and we may see another attempt to breach 1.4080 support level in the next hours.
In the flipside, any rally is likely to fade below 1.4400 peak, and as far as prices keep trading below it, our view will remain unchanged.
To conclude, the outlook is bearish in this pair and downside risks are likely to continue, unless we see a daily close above 1.4400 level.
USD/CAD keep fighting for a clear direction in the near-term and we are waiting for an increase of volume to drive the pair in the next hours.
Bulls are trying to push prices higher in order to protect 1.3650 daily support, but we still need additional momentum to talk about a potential bullish reversal.
Technically, the short-term trend is bearish below 1.3910 peak and the outlook is likely to remain unchanged until we see a daily close above this resistance.
Otherwise, another re-test of 1.3650 support cannot be ruled out, while a breach of this level will increase the selling pressure in this pair and we may see prices entering a free falling zone in the next days in the direction of 1.3540 weekly support.
Finally, traders should be aware that the med-term trend is bullish but the near-term is flat to slightly negative, which keeps the view unclear and we expect further volatility during this week until we see a clear break of the range mentioned above.
The Aussie rallied yesterday after breaking above 0.7180 resistance level and the pair jumped to as high as 0.7245 level, reinforcing our bullish outlook.
Actually, we expect the pair to keep heading north towards 0.7250 level in the next hours and we will watch carefully the reaction around this level as it represents a strong resistance in the hourly chart.
Looking at the med-term picture, AUD/USD still negative as far as prices keep trading below 0.7325/80 zone but if we manage to overtake this zone in the coming days, then a big reversal to the upside is likely to be in place.
In the near-term, the view has turned positive and we expect a continuation of yesterday’s upside move.
USD/JPY fell below 112.00 handle overnight, as bearish pressure has resumed.
From a swing trading view, as far as 115.50 peak is in place, the pair is likely to keep heading south.
In addition, we have seen a break below the hourly support of 112.30 level, which warn that the pair is likely to be set for further decline in the near future.
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 pair has opened another extension lower towards 111.00 support as far as 113.40 peak is in place.
Gold remains very choppy in the near-term and we believe that traders should wait for price action to develop further before taking new trading decisions.
The yellow metal is trading sideways between 1240 level in the upside and 1200 in the downside and as far as this situation continue, the near-term view will remain unclear.
Meanwhile, 1200$ represents the hourly bullish pivot and we should see buyers appearing above this level in the next days.
A break below 1200 should expose 1190 followed by 1180 in extension. In the flipside, a rise above 1240 will clear the path for 1245 followed by 1260 as it represents the daily resistance.
In sum, gold is still bullish as far as prices keep trading above 1180/1190$ per ounce in the daily chart and only a break below this zone, will warn about a deeper correction to the downside. While in the hourly chart, the trend is neutral.
The New Zealand Dollar traded higher yesterday and managed to break above 0.6675 resistance level.
Technically, the trend remains bearish regarding a med-term basis, which keeps the kiwi under pressure. Meanwhile, when looking at the near-term, the view is positive as far as prices keep trading above 0.6620 support.
In the daily chart, Kiwi is likely to remain supported above 0.6560 low. Consequently, we will focus on 0.6750 peak in the upside and 0.6560 support in the downside to forecast the next move in the pair.
In the short-term, 0.6620 and 0.6730 are on the watch from an intraday standpoint.
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