The rapidly eroding expectations of further rate cuts by the European Central Bank following the Draghi bombshell continues to provide the Euro bulls with enough momentum to keep above the stubborn 1.105 resistance. This pair has turned noticeably bullish on the daily timeframe as prices are trading above both the 20 and 50 SMA while the MACD points to the upside. Previous resistance at 1.105 may become a dynamic support which should encourage bullish investors to send the EURUSD towards 1.130 and potentially higher. A strong bearish move back below 1.105 signals bullish weakness but a solid daily close back under 1.095 invalidates this daily bullish outlook.
Sterling bulls continue to show resilience despite the heightened concerns over the implications of a Brexit which has periodically eroded investor attraction towards the currency. The GBPUSD rally has nothing to do with an improved sentiment towards the Sterling but Dollar weakness and this should provide an opportunity for bearish investors to send prices lower. From a technical standpoint, bears still have a chance to take control as long as prices can keep below the previous lower high of 1.4650. A bearish decline back below 1.4250 may act as a signal for a further decline towards 1.4100. If bulls manage to break above 1.4650 then this bearish outlook becomes invalidated.
Sterling vulnerability has been the driving force behind this pair which has consistently created lower highs and lower lows on the daily timeframe while MACD also trades deep into the downside. As long as prices can keep below 1.4250 there may be a further decline back down towards 1.400 and potentially lower. Lagging indicators such as the Simple moving averages marry this bearish view. A move back above the key 1.4250 resistance suggests bearish weakness and invalidates this daily bearish outlook.
The AUDNZD is heavily bullish on the daily timeframe as there have been consistently higher highs and higher lows. Prices are trading above both the 20 and 50 SMA while the MACD crosses to the upside. Previous resistance at 1.106 should become a dynamic support which may encourage an incline towards 1.1350.
The tension created by the European Centrals Banks unsuccessful attempt to devaluing the Euro renewed a wave of risk aversion which provided enough inspiration for Gold bulls to surge to fresh highs at $1282. This yellow metal is in an official bull market and may be set to incline further as anxious investor’s frantically scatter away from riskier assets to safe haven instruments amid the ongoing global turmoil. With negative interest rates become commonplace amongst most central banks, Gold has become a top performer and such should encourage bulls to send prices to levels not seen since January 2015 above $1300. From a technical standpoint, last week Thursday’s bullish engulfing candle should provide a foundation for Gold to trade towards $1300.
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