The Euro keep fighting for a clear direction in the near-term and ECB press conference later today should bring more volatility as usual.
Technically, the Euro remains bearish in the daily chart as far as prices keep trading below 1.1140 peak. Conversely, the single currency turned positive in the hourly chart, and should stay steady above 1.0940-1.0900 zone.
In the other side, 1.1050/75 represents the hourly resistance zone and only a break above these levels will clear the way for a big recovery in the next days.
As of today, we will focus on 1.0940 support in the downside and 1.1055 resistance in the upside and we prefer to wait for a clear break of those levels to confirm the next directional move in this pair. Otherwise, neutrality will persist in the short-term.
The British pound remains capped by 1.4280resistance level and should continue to trade sideways in the next hours until we see a clear break of either 1.4170 in the downside or 1.4280 to the upside.
Currently, the Sterling is bullish in the hourly chart and as far as prices keep trading above 1.4100 zone, the pair may remain strong in the near-term. However, we saw a rejection around 1.4240 level two times in a row as this level represents the 61.8% Fibonacci retracement of the cycle projected from 1.4170 low to 1.4280 peak. Consequently, we can see some weakness in the coming hours, as the pair remain overbought in the hourly chart.
To conclude, the pair still positive above 1.4100 level but can see a correction to the downside if we keep trading below 1.4240 peak and especially if prices slide below 1.4170 support.
USD/CAD fell sharply yesterday following Bank of Canada monetary policy meeting supported by the bounce in Oil prices.
Technically, we saw a shallow bounce from 1.3300 level, which represents a strong support level but prices failed to overtake 1.3470 resistance, which keep the outlook bearish in this pair. By now, we prefer to stay away from this pair as momentum indicators are sitting in the oversold territory but in the meantime, we believe that further weakness is due in this pair until we see a daily close above 1.3470 peak. Otherwise, the next stations should be 1.3220 followed by as low as 1.3135 in extension.
The Aussie reached our final target around 0.7530 yesterday and consequently we expect profit taking to begin in this pair in the next hours.
As of now, the pair should face some selling pressure in the near-term but as far as prices keep trading above 0.7410 low, the outlook is likely to remain positive. Otherwise, we can see a deeper correction towards 0.7365 level before the bullish trend resume.
In the opposite, a break above 0.7530 high will trigger another rally in this pair in the direction of 0.7600 zone.
The pair bounced strongly near 112.20 major support, and kept the higher lows structure since from 111.00 level unchanged by now. Moreover, prices managed to break above 113.50 resistance level, which may be a strong bullish signal in the near-term.
Actually, the pair is testing a descending trend line that comes from 114.50 peak and we should see some sellers around 113.75 level as it represents the hourly resistance in this pair.
In sum, our view is slightly positive in this pair and the double bottom pattern from 111.00 will remain valid as far as 112.20 low is in place.
Gold weakened around 1280resistance level and begun showing some signs of weakness in the hourly chart.
Yesterday, prices broke below 1250 support level, which confirmed a deeper correction in the near-term. In the other side, 1264$ represents the bearish pivot and prices may remain under pressure below this peak.
Technically, the next level of interest stands at 1245$ and we will focus on this support today as a break below it should expose 1238$ per ounce. In the other side, only a break above 1264 level will confirm that the current correction has ended and the yellow metal is ready for another wave of strength.
Surprisingly, the New Zealand Dollar sold-off across the board overnight as Reserve Bank of New Zealand lower its official cash rate by 25bps from 2.50% to 2.25%.
The Kiwi fell sharply and broke below 0.6715 hourly support, which cleared the way for a big decline towards 0.6650 support level. Moreover, prices extended the decline to 0.6610 before to bounce back a little bit.
In addition, technical 0.6650 represent the bullish pivot in the hourly chart and the kiwi should remain a buy on dips by investors unless we see a daily close below this support.
Actually, we prefer to stay away from this pair until we see a stabilization in volatility and we will wait for today close to see if sellers will maintain the control of this pair.
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