The euro traded in a tight range yesterday as market participants awaits further catalysts to drive their investment decisions.
From a technical standpoint, the pair is trading near a major support zone, which stands between 1.0850 and 1.0810 levels. The first level represents the 61.8% Fibonacci retracement of the entire rally seen from 1.0520 low, while the second one coincide with a strong support from January.
In addition, momentum indicators are sitting in the oversold territory, which reinforce the possibility of a short-term bounce. Consequently, we believe that the Euro may continue to fall in the next hours towards the mentioned above support zone, before to see strong demand in this pair.
Finally, the focus should be on 1.0960 level in the upside as it represents the bearish hourly pivot and only a break above it will confirm a bullish reversal in the short-term.
The British pound did an attempt to reverse the bearish trend in the hourly chart, but in vain as sellers succeeded to protect 1.4042 peak.
The pair rallied to as high as 1.4018 during yesterday’s European trading session before to fall around 1.3900 mark.
Meanwhile, we are still looking for a potential bullish reversal in the hourly chart, as prices showed a bullish divergence in the RSI indicator around 1.3840 low. In addition, the pair bounced from a key Fibonacci retracement (61.8%) located around 1.3900, which keeps the view slightly positive in the near-term.
Consequently, chasing the weakness from the current levels can be dangerous and we believe that another re-test of 1.4040 peak can happen, especially if prices holds above 1.3900 level.
In the opposite, a break below 1.3900 will put the Sterling again under pressure.
USD/CAD plunged as expected during the U.S trading session to reach the support zone around 1.3420 level.
As of now, our view remains bearish in this pair but we expect a short-term recovery to begin soon, especially if prices succeed to overtake 1.3500 psychological barrier.
However, the hourly pivot stands at 1.3590 level and as far as the pair keep trading below this level, downside risks are likely to persist.
In the flipside, a break below 1.3380 low will expose 1.3270 during the next days.
The Australian Dollar keep bounced overnight and has reached as high as 0.7243, reinforcing the upside pressure seen recently.
Looking at the hourly chart, traders should focus on 0.7110 support level 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.
For today, we will focus on 0.7250 resistance again as this level continue to act as a strong resistance in the daily chart and we have seen prices falling around this level for three consecutive times.
Moreover, a daily close above 0.7250 will clear the path for 0.7300/25 zone in the near future.
The pair extended its rally after reaching the green zone specified in our previous technical report.
We were expecting a bullish reaction around 112.00/112.55 zone as far as 111.00 was intact. As expected, the pair bounced strongly and managed to overtake 114.00 handle.
As of now, all eyes are on 114.90 peak, which represents a major resistance in the daily chart and the neckline of the double bottom pattern seen from 111.00 low.
Finally, a daily close above 114.90 level is needed to obtain a strong confirmation about the bullish reversal in place.
Technically, Gold continue to trade sideways in the near-term between 1248 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 1211 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 trend line drawn from 1308 peak. In the meantime, we have seen a valid bullish pullback from 1190 former resistance (new support) which keeps the pressure to the upside.
Consequently, we believe that another rally is likely to happen in the coming days and February high around 1264$ can be targeted, while a daily close below 1211 low is likely to weaken this positive view.
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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