The euro bounced as expected around 1.0965/50 support zone, which represents the 61.8% Fibonacci retracement of the recent recovery seen from 1.0710 low.
Looking at the technical picture, the pair is showing an inverted head and shoulders pattern and a potential bullish reversal is likely to happen during the next hours.
However, traders should focus on 1.1042 level as it represents the neckline of the pattern in the hourly chart and only a close above it should validate this signal.
In the other side, a break below 1.0980 will cancel any upside potential.
Actually, we believe that the euro is set for a reversal in the near-term but we will wait for bullish momentum to increase before to confirm this positive signal.
After the big sell-off seen in cable, finally the pair has found a temporary low around 1.3875 level.
The pair is trading sideways actually in the short-term but the med-term remain strongly bearish.
From an intraday standpoint, we will watch 1.4015 level carefully as a daily close above it will reverse the short-term trend and can send prices to as high as 1.4055 in the coming hours.
Regarding the downside, the pair should continue to fall in the direction of 1.3650 level in the next weeks, but we expect a short-term correction to the upside before the bearish trend to resume.
After trading sideways for some days, USD/CAD has begun to show strong signs of weakness as prices failed to overtake 1.3850 resistance level during yesterday U.S trading session.
Bears managed to protect 1.3910 daily resistance, and we have seen a strong reversal to the downside. Moreover, the pair managed to break below 1.3650 major support today, which is likely to trigger a big move to the downside in the following sessions.
We expect the pair to as low as 1.3500-1.3450 zone as far as prices keep trading below 1.3850 peak. Consequently, our view is bearish and traders should be aware that only a daily close above 1.3850 level will signal the end of the current bearish cycle which began from 1.4690 high.
Otherwise, downside risks are likely to continue.
The Aussie remain steady and we still believe that another leg higher is likely to happen soon as far as 0.7080 low is in place.
Looking at the hourly chart, we expect the pair to keep trading higher in the next days and we are seeing yesterday’s drop as corrective only. Traders should focus on 0.7145 support zone in the hourly chart and as far as this level holds, the view will remain positive in the short-term.
Looking at the med-term picture, AUD/USD may re-test a major resistance around 0.7325/80 zone but we need a daily close above 0.7250 first, in order to confirm another rally in the pair.
USD/JPY failed to break below 111.00 support level and showed a potential double bottom pattern in the hourly chart.
In the near-term, the pair is likely to stay under pressure below 113.40 peak and only a break above this level will confirm a bullish reversal.
In the daily chart, the trend remains bearish as far as 114.90 peak is in place, in addition, this level represents the neckline for the double bottom pattern and only a daily close above this level will clear the way for a big recovery.
Support: 112.00 -111.00-110.50
Gold continue to trade in a very choppy as the monthly close approaches.
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.
Yesterday, we have seen an acceleration above 1240 resistance and prices rallied to as high as 1252$ per ounce but reversed a big part of the daily gains before the close, which kept us skeptical about yesterday’s move.
In the meantime, gold keep creating a series of higher lows since 1200 support, and as far as 1226 low is in place, we believe that prices may remain well supported.
To conclude, a break below 1200 should expose 1190 followed by 1180 in extension. In the flipside, a rise above 1240/50 will clear the path for 1262 followed by 1280 in the next days.
The New Zealand Dollar has turned bullish in the hourly chart, and prices are about to exit the range formation seen in the last few days.
Technically, the pair was stuck between a 200 pips range between 0.6560 in the downside and 0.6750 in the upside. But looking at momentum indicators, we believe that prices are set for a bullish breakout.
Consequently, Kiwi is likely to remain supported above 0.6560 low and we will focus on 0.6750 resistance level tomorrow to confirm the next move in this pair.
Finally, traders need to focus on the upper side of the mentioned above range as a break above 0.6750 resistance is likely to open the path for a big rally in the Kiwi.
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