The Euro traded higher on Friday after bulls succeeded to overtake 1.0963resistance level. However, the single currency remains under pressure as far as prices keep trading below 1.1070 peak.
Consequently, we believe that the upside potential in this pair is limited. In the meantime, we will focus on 1.0903 level, which represents post NFP low as bulls may try to protect this support following retracements.
The hourly support zone stands between 1.0935 and 1.0955 levels, and we expect to see a short-term bounce from this zone.
To summarize, the trend remains bearish in the daily chart as far as 1.1070 peak is intact, while in the hourly chart the outlook is neutral and we will wait for a break above 1.1040 or below 1.0903 low to confirm the next direction in the short-term.
The British pound has reached a strong resistance level around 1.4250 on Friday as it represents the 50% Fibonacci retracement of the entire decline seen from 1.4660 peak.
We expect the pair to find strong sellers in the beginning of this week, and a correction lower towards 1.4115 level is likely. The hourly trend is bullish as far as 1.4030 low is in place, while the daily technical picture still calling for further weakness as far as 1.4400 peak is intact.
Traders should focus on 1.4100-1.4115 zone this week, as a break below it should send the pair towards the major support of 1.4030. In the opposite, a break above 1.4250 resistance should trigger another rally in the direction of 1.4350 level.
USD/CAD extended the decline during last week and dropped to as low as 1.3310 level, which coincide with 50% retracement of the biggest rally, which begun from 1.1900 lows.
For the week ahead, we maintain our negative view as far as 1.3470 peak is in place and we will wait for a break of this level in the coming days to confirm a bullish reversal in the short-term. Meanwhile, traders should be aware that the pair is heavily oversold in the hourly chart, in addition, we have reached a major support zone in the weekly chart. Consequently, a correction higher may happen but we will wait for a confirmation before to validate the next leg in this pair.
Finally, the short-term resistance zone is located between 1.3390 and 1.3410 levels. In the flipside, a break under 1.3310 low will trigger another sell-off towards 1.3270 level.
The Australian Dollar jumped as much as 300 pips during last week, which brought a strong bullish signal in the Aussie.
In the daily chart, a bullish reversal is valid by now as prices managed to end the week above 0.7380 major resistance. As of now, we believe that the pair is likely to continue trading higher towards 0.7500 psychological barrier, but we expect a short-term retracement during the beginning of this week before the upside pressure to resume.
In term of technical levels, 0.7338 followed by 0.7300 in extension represents the support levels in the hourly chart, and only a break below these levels will warn about a deeper correction to the downside. Otherwise, the bullish outlook will remain unchanged.
The pair keep trading sideways in the near-term and we prefer to wait for price action to develop further to get a clearer technical picture.
The fight is taking place between 114.25/50 zone in the upside and 113.20 level in the downside.
In the daily chart, the trend remains bearish below 114.90 peak as prices keep forming lower highs structure, which keeps the pair under pressure from a swing trading perspective.
Currently, the trend remains neutral in the hourly chart and traders should stay away from this pair actually. However, a break below 113.20 support will confirm that bears overtook the control of this pair again and we can see an acceleration to the downside in the direction of 112.75/50 zone.
In sum, we need to wait for a break above 114.50 level to confirm another leg higher in this pair or below 113.20 support to confirm that the decline has resumed.
After breaking above February high, Gold fell into a short-term correction before the NFP release. Prices dropped to as low as 1250 level before to find strong demand and bounce back strongly.
This level represents 50% retracement of the last rally seen from 1225 low. Moreover, prices made a marginal new high at 1280$, which keeps the bullish trend intact in the hourly chart.
Last week close was very significant and by now, we believe that the yellow metal has cleared the path for another extension higher in the direction of 1285 level followed by 1308 weekly resistance.
In addition, Gold broke a major bearish trend line that comes from 1308 peak, reinforcing the bullish outlook.
Consequently, we believe that another rally is likely to happen in the coming days and we will maintain our positive view in the near-term as far as prices keep trading above 1250 support zone.
The New Zealand Dollar rose above 0.6800 mark against the U.S Dollar to confirm a potential bullish reversal in this pair.
In the daily chart, despite the fact that the pair broke below 0.6430 support, prices did not manage to close below this level and bounced back strongly, which warned about a bearish trap.
In the near-term, the pair was stuck between a 200 pips range between 0.6560 in the downside and 0.6750 in the upside and managed to break this range from the upper-side during last Friday.
Momentum indicators began to show clear signs of bullish reversal in the daily, but we need to wait for a break above 0.6880 peak to confirm a major move to the upside in the following days.
Regarding, the short-term 0.6750 former resistance can act as a support level by now, while a break below it will send prices into a larger correction towards 0.6710 level.
In the flipside, a daily close above 0.6820 level, will confirm another rally in the direction of 0.6880 major resistance.
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