The euro continued to trade in a tight range yesterday after the single currency approached a critical zone.
Technically, the short-term trend is bearish by now and we expect the pair to decline further towards 1.0965/50 zone, which represents the 61.8% retracement of the last rally from 1.0710 low to 1.1375 peak. In addition, this zone coincide with a former resistance and we may see strong demand around it.
As of now, we believe that the euro will remain under pressure as far as 1.1140 peak is intact. In the hourly chart, we can find 1.1052 as a resistance level, which is likely to cap prices in the short-term.
To summarize, the trend is bearish in the short-term unless 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 face heavy selling pressure.
The Sterling fell sharply yesterday and we saw the pair breaking below 1.4000 psychological support overnight.
Yesterday’s close was very significant and a big sell-off cannot be ruled out in the next days. Looking at the technical picture, we can see that the British pound remains very weak and prices keep drawing lower highs/ lower lows, which keeps our view strongly negative
Currently, the bearish pivot in the hourly chart is located at 1.4170 level and only a daily close above it will signal a potential recovery in the pound. Otherwise, cable should continue to fall in the direction of 1.3650 level in the next weeks.
USD/CAD bounced back above 1.3800 mark as Oil weakness has resumed.
Bulls managed to protect 1.3650 daily support, and we have seen a strong move to the upside in the pair during the U.S trading session, however, we still need additional momentum to confirm a potential bullish reversal in the hourly chart.
The next levels of interest stands at 1.3850 followed by 1.3910 resistance in the upside, while in the downside, 1.3650 remains the key support by the time being.
Finally yet importantly, traders should be aware that the med-term trend remains bullish but the near-term is flat to slightly negative, which keeps the view unclear by now. Consequently, waiting for price action to develop further seems to be a wise decision.
The Aussie failed to overtake 0.7250 daily resistance as we have seen strong selling pressure around this level.
Actually, we expect the pair to keep trading higher in the days and are seeing the current drop as corrective only. Traders should focus on 0.7080/60 support zone and as far as these levels holds, the view will remain positive in the short-term.
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.
Support: 0.7160- 0.7140-0.7080
USD/JPY has begun to show some signs of weakness as prices dropped below 112.00 handle.
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 still lacking momentum in the near-term, and until now, prices failed to overtake 1240 peak, which kept us skeptical about the future price action in the near-term.
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.
Technically, gold showed two lower highs from 1260 peak, which may signal a potential bearish signal, but this signal will remain ineffective until we see a break below 1200 psychological support to validate a bearish reversal.
In sum, 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.
The New Zealand Dollar trading structure remains neutral in the short-term and we prefer to stay away from this pair by the time being.
Technically, 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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