The Euro ended last week strongly higher and managed to stabilize above 1.1100 mark.
The single currency broke above 1.1070 hourly resistance level, which gave us the confirmation of a bullish reversal. Looking for the week ahead, we are seeing many risk events that will affect the price action and consequently we expect volatility to increase significantly.
Looking at the technical picture, the pair stands in overbought levels in the near-term and should face some correction to the downside before the bullish trend resume. 1.1070-1.1040 represents the support zone in the short-term and the pair may remain well supported above this zone.
In the upside, a daily close above 1.1200 should expose 1.1235 level followed by 1.1300 psychological barrier in extension.
The British pound extended its gains and reached a strong resistance zone in the daily chart, which stands between 1.4410 and 1.4535 levels.
The trend remains bearish in the med-term as far as the pair keep trading below 1.4660 peak. Conversely, the trend is strongly bullish in the near-term, which keeps the view positive by the time being. Meanwhile, traders should watch 1.4250 support this week as a daily close below this level will confirm the end of the recent correction. Otherwise, prices will continue to trade sideways to higher in the coming days.
Currently, nothing has changed in our view and we expect the pair to remain steady as far as it keeps trading above 1.4100support zone in the daily chart, in the meantime, the pair remains overbought in the near-term and chasing strength from the current level may be dangerous.
To conclude, the pair is positive above 1.4100 level but can see a correction to the downside in the near future.
USD/CAD remains under pressure as the lower high structure from 1.3500 peak still intact.
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 1.3135 weekly support. In the other side, if the pair overtake 1.3400 resistance, then 1.3470 peak will be in focus.
The Aussie managed to print new highs during last Friday and prices reached as high as 0.7594 level overnight, which keeps the bullish trend steady in the daily chart. However, momentum indicators has begun to weaken, which may lead to a downside correction in the short-term as prices approached the 0.7600 psychological resistance.
As of now, the pair should continue to trade sideways to higher towards new highs and can extend its gains to 0.7650 before to see strong sellers. With that in mind, we expect bulls to continue to buy this pair on dips as far as 0.7410 low is in place.
In the flipside, a break below 0.7410-0.7390 zone will warn about a deeper correction to the downside.
- Range tightens ahead of the FED meeting
- Double bottom at 111.00 level awaiting validation
- Bullish confirmation comes with a break above 114.90 resistance
- Battle between 114.50 and 112.60 in the near-term
The pair saw big volatility last week 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.
Finally, we expect a major break in this pair during this week and traders should focus on the levels mentioned above as they represents key levels in this pair.
Gold has begun to show some signs of weakness after reaching a key Fibonacci level last week around 1285$ per ounce.
This level represents the 61.8% Fibonacci retracement of the entire drop seen from 1432 peak and we may see a pause in the upside momentum this week.
Talking about the positive signals, Gold broke a major bearish trend line that comes from 1308 peak, reinforcing the bullish outlook and we are seeing Friday drop as corrective only.
Moreover, last month 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 1224-1212 zone.
The New Zealand keep fighting for a clear direction in the near-term. The pair found some support around 0.6610 level and bounced to reach as high as 0.6775 level before to reverse back lower.
The daily chart remains neutral and the kiwi continue to trade between 0.6800 in the upside and 0.6550 in the downside. Consequently, traders should stay away from this pair and wait for a break below 0.6610 level, which represents the hourly support in this pair before to confirm that the med-term bearishness is back.
In the flipside, a daily close above 0.6800/20 zone will clear the way for a big rally in this pair.
Actually, our view is neutral in this pair, until we see clear signs of one of the levels mentioned above.
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