The euro remains under pressure in the last trading day of February after prices failed to overtake 1.1070 resistance during last Friday.
Technically, the short-term trend has switched to bearish again, joining the med-term one, which keeps our view bearish in this pair. As of the week ahead, we believe that the single currency may keep trading sideways to lower as far as 1.1070 peak is in place. In the other side, a break below 1.0900 mark will trigger another sell-off towards 1.0810 daily support.
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 in the direction of 1.0810 support.
The Sterling has ended last week near its lowest level in more than five years.
Looking at the technical picture, the pair is likely to fall further in the next days and we are seeing the nearest support level around 1.3845 level, which coincide with March 2009 lows and from where we expect some buyers to appear.
In the near-term, 1.4042 represents the bearish pivot and should cap any attempt of recovery in the next hours.
In sum, our view remains strongly bearish regarding the British pound below 1.4042 in the near-term, moreover, if the decline continue, 1.3845 should be the next level of interest followed by 1.3650 in extension.
USD/CAD plunged as bears managed to push prices below 1.3650 major support. We have seen a big sell-off in the pair in the direction of 1.3540 support, which represents the 61.8% Fibonacci retracement of the big rally seen from 1.2830 lows.
As of now, we expect the bearish momentum to decrease gradually and a short-term bounce is likely to happen. However, traders should be aware that the short-term trend is bearish unless we see a daily close above 1.3650 level. Otherwise, downside risks may increase.
In the downside, the next levels of interest stands at 1.3540 followed by the psychological support of 1.3500.
In the flipside, 1.3650 is the hourly resistance and as far as this level hold, the outlook will remain negative in the near-term.
The Australian Dollar failed to overtake 0.7250 resistance level for the second consecutive time in a row as we have seen strong bearish reaction around this level.
Looking at the hourly chart, traders should focus on 0.7145 support zone and as far as this level holds, the view will remain positive in the short-term, while a break a breach of this support should expose the daily support at 0.7080 level.
From a med-term standpoint, AUD/USD remains negative below 0.7325/80 zone and we need a daily close above 0.7250 first, in order to confirm another rally in the pair. Otherwise, the near-term will remain neutral.
Support: 0.7160- 0.7140-0.7080
The pair rallied during last Friday and managed to break above 113.00 psychological barrier, which keeps the scenario of the double bottom pattern mentioned in our previous report, valid until now.
Regarding the technical levels for the week ahead, we will focus on 112.55 followed by 112.00 support levels in the downside, while in the upside all eyes should be on 114.00, followed by 114.90 peak in extension.
Traders should be aware that as far as we do not see a daily close above 114.90 level, the reversal double bottom pattern that emerged around 111.00 level, is not effective yet. Hence, we will be careful towards the future price action in the near-term.
In the other side, a daily close above 114.85 will confirm the double bottom reversal pattern from 111.00 lows and should clear the way for a big rally in March. Otherwise, more choppiness is likely to be seen in the following sessions.
We have seen a big recovery in Gold prices since the beginning of 2016 as the yellow metal represents one of the most classical safe haven assets.
Technically, Gold continue to trade sideways in the near-term between 1240 level in the upside and 1200 in the downside and as far as this situation continue, the short-term view will remain neutral to slightly positive.
In the hourly chart, the nearest support is located at 1215 level and prices should remain well supported above this level.
While In the daily chart, gold remain positive as far as 1190 low is in place. Moreover, prices broke above the bearish trendline drawn from 1308 peak, in the meantime we have seen a valid bullish pullback from 1190 former resistance (new support).
Consequently, we believe that another rally cannot be ruled out in the coming days especially if we see a weekly close above 1260 handle.
To conclude, a break below 1200 should expose 1190 followed by 1145 in extension. In the flipside, a rise above 1240 will clear the path for 1242 followed by 1263.50$ per ounce.
The New Zealand Dollar has turned neutral again in the hourly chart, despite the fact that prices managed to print new highs above 0.6750 peak, which may signal another leg higher in the next days.
Currently, we need to wait for a weekly close above 0.6750 to confirm this possible breakout, otherwise the neutrality will keep surrounding.
Technically, the pair was stuck between a 200 pips range between 0.6560 in the downside and 0.6750 in the upside. Meanwhile, and looking at momentum indicators, we believe that prices are set for a bullish breakout in the next days especially if the pair keep trading above 0.6560/40 zone.
In the flipside, a daily close below 0.6560 support will bring the bearishness back.
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