The Euro traded higher yesterday and reached a major descending trend line that comes from 1.1495 peak. This intersection level stands at 1.1340 level, which is near the daily resistance located at 1.1375.
Consequently, our focus will be on this resistance zone in the next days, as a close above 1.1340-1.1375 zone will confirm a big reversal to the upside in this pair. Looking at today’s technical levels, we are seeing the nearest support around 1.1220 level.
Actually, our view remain bullish in the daily chart while in the hourly chart we expect a short-term correction that can reach as low as 1.1220 level before the bullish trend resume. In addition, traders should keep in mind that the bullish pivot is located at 1.1060 and as far as the pair keep trading above this level, the view will remain positive.
The British pound soared as prices managed to break above last week high, reinforcing the bullish outlook in this pair.
Technically, the break of 1.4400resistance level cleared the way for 1.4500 psychological barrier and as expected, the Sterling rallied to reach 1.45 area before to stabilize around 1.4450 level. As of now, traders should focus on this daily resistance, as a break above it is likely to expose February high at 1.4670.
In the other side, the pair should remain well supported above 1.4220 low and only a break below this level will cancel our positive outlook.
From an intraday standpoint, 1.4400(former resistance) should act as a support by now while a 1.4475 is seen as the near-term resistance.
The pair found some support around 1.2950 support level as mentioned in our previous report but the trend remains clearly bearish in the biggest time-frames.
As of today, we expect an increase of volatility in this pair as traders awaits the Canadian inflation figures later today. Technically, if the pair manage to bounce then we will look for strong sellers to appear around 1.3040-1.3060 zone, in the other side, 1.3000 level should keep supporting prices in the near-term.
It is important to note that this pair remain clearly oversold but in the meantime, we do not see any signs of bullish reversal by the time being. Finally, only a daily close above 1.3130 level will warn about a potential recovery in this pair. Otherwise downside risks will persist.
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.
The pair rallied to reach a strong resistance around 0.7650/80 zone from where we expect selling pressure to begin and the current bullish momentum to stabilize.
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 and only a slide below 0.7410 will weaken this outlook.
Support: 0.7580- 0.7410-0.7390-0.7350
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 testing a major support level at 111.00 ahead of this week close. The daily trend is bearish and consequently we are seeing the upside momentum limited in this pair.
A break below 111.00 should trigger a big sell-off towards 110.00 level while a daily close above 112.00 will call for a larger correction in the coming hours.
Meanwhile, we prefer to stay away from this pair as Bank of Japan intervened yesterday in the market trying to cap the yen strength.
Gold may face strong resistance around 1260/1270 zone as bears may try to protect 1285 peak.
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.
In addition, 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. For today, if prices fail from the intraday resistance zone, then we will for buyers to enter the market around 1248-1243 zone for another leg higher.
In the other side, a break below 1225 support will expose 1200-1190$ support zone.
The New Zealand Dollar posted strong gains yesterday and succeeded to break above 0.6820 resistance level, which is likely to clear the path for a re-test of 0.6885/90 peak in the next days.
Looking at the technical picture, the pair is working on a potential bullish reversal in the weekly chart but still need additional bullish momentum. We will focus on 0.6880/0.6890 levels by now 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.
If the pair fall into a short-term retracement, then we will for support around 0.6770 level followed by 0.6700 in extension before another rally to happen.
Support: 0.6770-0.6700 -0.6593
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