The Euro traded higher yesterday after bulls succeeded to overtake 1.0963resistance level. The single currency managed to close above 1.1000 psychological resistance, which keep the bullish outlook unchanged in the near-term.
In the daily chart, the pair bounced from the 61.8% Fibonacci retracement of the recent recovery seen from 1.0520 low.
Consequently, we believe that the short-term trend has become bullish and we expect the pair to trade higher in the next hours towards post NFP resistance located at 1.1042 level followed by 1.1070 level in extension.
In the flipside, we will focus on 1.0900 level and as far as the pair keep trading above this level, the upside pressure is likely to persist.
The British pound extended its gains during yesterday U.S trading session and managed to reach 1.4280 level, which represents a strong resistance in the hourly chart. However, we do not see any signs of bearish reversal in the near-term. Consequently, the trend will remain bullish and as far as 1.4135 low is in place, more gains can be seen in the near future.
However, we expect the pair to find strong sellers around 1.4300 psychological resistance. In the opposite, a break above 1.4280/1.4300 resistance zone should trigger another rally in the direction of 1.4350 level.
USD/CAD has reached a major support, which stands at 1.3270 level, and from where investors may begin booking some profits.
As of now, 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.
The Australian Dollar traded higher yesterday and reached as high as 0.7480 level, which keeps the bullish pressure steady.
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.
In the near-term, 0.7390 is the hourly support followed by 0.7340 in extension, and only a break below these levels will weaken the bullish outlook.
The pair managed to break below the hourly support located at 113.20 level, which reinforce the probability of another leg lower in the next hours.
In the daily chart, the trend remains bearish below 114.90 peak as prices keep forming lower highs structure. By now, the hourly bearish pivot is located at 113.50 and the pair may continue heading south as far as it keeps trading below this level.
In sum, the trend remains bearish in the hourly chart and we will focus on 112.70 support level today followed by 112.50
In the other side, a break above 113.50 will cancel this bearish outlook.
Gold traded in a tight range yesterday and ended the day slightly higher.
Nothing has changed in our bullish view, the yellow metal is set for further gains in the coming days and should reach 1285$ per ounce which represent a key level for future price action.
Moreover, last week close was very significant and by now, we believe that the yellow metal has cleared the path for another extension higher as far as 1250 low is in place.
Technically, Gold broke a major bearish trend line that comes from 1308 peak, and succeeded to overtake February high at 1264$ 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.
As mentioned, the New Zealand Dollar did a short-term bounce from 0.6750 former resistance, which turned support by now.
Meanwhile, prices came back off as bullish momentum began to weaken. In the daily chart, as far as 0.6880 peak is in place, the pair should remain capped and only a daily close above this resistance will confirm an effective bullish reversal.
In the near-term, we expect the pair to trade sideways, also a downside correction cannot be ruled out, especially if prices break below 0.6710 support.
Finally, the short-term trend is neutral and we prefer to wait for clear signs of trend reversal before to confirmation a directional move in the Kiwi.
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