The Euro followed our technical outlook perfectly as the single currency managed to bounce strongly from 1.1070 support zone.
In addition, the pair succeeded to overtake last week high ending the day above 1.1200 mark, which keeps the bullish outlook strong. Moreover, the pair formed a bullish engulfing candle in the daily chart and by now we expect the rally to continue towards 1.1300 psychological resistance.
We believe that the weekly close will be very important in this pair, as a close above 1.1300 resistance should expose 1.1375 peak in the coming days.
In the other side, only a daily close below 1.1060 low will change the current view.
The British pound bounced from the 61.8% Fibonacci retracement of the recent recovery seen from 1.3830 low and we believe that the pair is set for another leg higher as the last correction has ended.
As of now, the pair is heading towards a major resistance zone, which stands between 1.4290/1.4335 levels and from where we expect some profit taking to begin. Meanwhile, and looking to yesterday’s close, the hourly trend turned bullish again and as far as 1.4050 low is in place, another re-test of 1.4415 peak remains possible.
Regarding the med-term, the trend remains bearish as far as the pair keep trading below 1.4660 peak while a break above this resistance may confirm a bullish reversal in this pair.
The pair found strong resistance around 1.3400 psychological resistance and sold-off sharply following the FOMC rate decision yesterday.
In the daily chart, USD/CAD broke below all the major support levels, and it is actually heading towards 1.3000 support. We believe that another wave of weakness is due in this pair and traders should be aware that we are not seeing any strong support until 1.2820 level, which represents October 2015 low.
However, it is clear that the pair remains clearly oversold in the short-term but it is not a reason to call for a reversal yet as momentum indicators still pointing for further decline.
Actually, 1.3400 became the bearish pivot in the daily chart and only a break above this level will confirm that the downside pressure has weakened.
The Aussie bulls managed to protect 0.7410 low and prices bounced sharply and extended gains above this week high, which were at 0.7494 level reinforcing the bullish outlook in the daily chart.
As of now, the pair should continue to trade higher towards a major resistance located at 0.7650, from where we expect strong sellers to appear. Meanwhile, as far the pair keep trading above 0.7410 support zone, upside pressure will remain in place.
Looking at the weekly chart, the pair has already confirmed a bullish reversal after breaking above 0.7385 major resistance and consequently, the trend changed to bullish by the time being.
The pair broke below its hourly range located between 114.00 and 112.00 levels, which cleared the way for another leg lower in this pair.
Technically, the pair is heading towards February low at 111.00 level and by now, the trend has turned bearish in the near-term, which reinforces the probability of a major breakdown in this pair on the back of USD recent weakness.
Meanwhile, we prefer to wait for a weekly close below 112.00 mark to confirm that this breakdown is effective. In the meantime, swing traders should wait for a close below 111.00 level to confirm that the recent consolidation ended and a theoretical target of 110.00 should be active.
Otherwise, the pair is likely to keep trading sideways to lower until we see an increase in bearish momentum. In the flipside, only a close above 114.00 barrier will cancel this negative view.
Gold jumped from the support zone mentioned in yesterday’s technical report to reach as high as 1260 in early European trading session.
Technically, the yellow metal found strong demand around 1225 level, which represents a key Fibonacci retracement (61.8% of the rally from 1190) and actually our view is bullish in the yellow metal , looking for a re-test of 1285$ per ounce in the next days.
The weekly trend remains bullish, and as far as prices keep trading above 1190 low, 1308 peak may remain a theoretical target from a swing trading perspective.
In the other side, a break below 1225 support will expose 1200-1190$ support zone.
The New Zealand Dollar soared just few pips away from its daily support level located at 0.6550 level. The kiwi rallied to above 0.6800 mark on the back of FED dovish comments coupled with a better than expected GDP figures.
Actually, all eyes should be on 0.6800/0.6820 resistance zone, as a break above it should call for a re-test of 0.6880/90 resistance area. Looking at the technical picture, the pair is working on a potential bullish reversal but still need additional bullish momentum. We will focus on 0.6880/0.6890 levels as a weekly close above this zone will trigger a major breakout in this pair and the Kiwi should see a big rally to the upside.
Currently, we will focus on the near-term resistance at 0.6820 to confirm yesterday’s move. To conclude, we remain bullish in this pair especially with the recent recovery in commodity prices.
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