The Euro found strong demand around 1.0825 daily support and succeeded to reverse the entire daily losses seen after the rate cut decision by the ECB.
The single currency broke above 1.1070 hourly resistance level, which gave us the confirmation of a bullish reversal. Prices rose to above 1.1200 level ending the day with a strong close.
As of now, the pair stands in overbought levels in the near-term and should face some correction to the downside before the bullish trend resume. For today, we will wait for a bullish reaction either from 1.1100 mark or 1.1070 level as it became a support by now (former resistance).
Finally, we prefer to wait for the weekly close before to confirm an effective bullish reversal in this pair.
The British pound did a re-test of 1.4120’s support zone and rallied to as high as 1.4315 level before to end the day slightly below 1.4300 mark.
As of now, nothing has changed in our view and we expect the pair to remain steady as far as it keeps trading above 1.4100 support zone.
Looking at the daily chart, the pair has reached big resistance around 1.4300 level and can extend to 1.4350 zone as a final target before to end a bullish cycle from 1.3870 low. Consequently, we do not like to chase the strength from the current levels as prices remains overbought in the near-term.
To conclude, the pair is positive above 1.4100 level but can see a correction to the downside soon.
USD/CAD remains under pressure as the lower high structure from 1.3500 peak still intact.
Traders should focus on this pair as the market awaits the employment change figures from Canada later today, which is likely to bring additional volatility.
Technically, we maintain our bearish outlook and we are seeing the upside potential limited in this pair as far as it keeps trading below 1.3470 peak. In the other side, if prices continue to decline, then the next levels of interest are located at 1.3220 followed by 1.3135 weekly support.
The Aussie keep trading strongly as bulls succeeded to protect 0.7410 low. The Australian currency is supported by the strong recovery in the commodity market; in addition, we saw a significant break above 0.7500 psychological resistance earlier this week, which support the bullish outlook in the coming days.
As of now, the pair should continue to trade sideways to higher towards new highs and can extend its gains to 0.7550 level followed by 0.7600 in extension.
In the flipside, a break below 0.7410-0.7390 zone will warn about a deeper correction to the downside. Otherwise, bullish pressure is likely to persist.
The pair saw big volatility yesterday coupled with many false signals from a technical standpoint.
No clear breakout/down was seen yet in this pair and we believe that prices may continue to trade sideways until we see either a daily close above 114.25/50 zone in the upside or 112.20/112.00 levels in the downside.
Consequently, we prefer to wait for price action to develop further to confirm the next directional move in this pair. However, and when looking at the daily chart, we can see that the double bottom pattern from 111.00 level remains valid as far as 112.20 low is in place which keeps our view slightly bullish.
Gold bounced strongly yesterday after reaching a major support zone located between 1235 and 1240$ per ounce.
The yellow metal rallied before to find a temporary top around 1283$ overnight, this level is a key resistance as it represents the 61.8% Fibonacci retracement of the entire drop seen from 1432 peak and we may see some sellers around this level today.
In the other side, Gold broke a major bearish trend line that comes from 1308 peak, reinforcing the bullish outlook and we are seeing any drop as corrective only.
Moreover, 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 1308 level during the next weeks.
Consequently, we believe that another rally is likely to happen and we will maintain our positive view in the near-term as far as prices keep trading above 1236 low.
The New Zealand trimmed some of post RBNZ decision losses, and did a re-test of the broken former support around 0.6710 level. This level is acting as a resistance in the near-term and the kiwi should remain capped below this level.
Meanwhile, the daily chart remains neutral with a light preference to the upside as far as 0.6550 low is in place. Regarding the downside, a break below 0.6610 level, which represents the hourly support in this pair may bring the bearishness back.
Actually, our view is neutral in this pair, until we see clear signs of a break either below 0.6610 or above 0.6710/20 level.
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