The Euro fell from the upper side of the consolidation triangle seen in the daily chart and prices dropped towards the hourly support zone.
Actually, our view is flat in the near-term with a light preference to the upside, as per the daily trend. Technically, as far as 1.1060 low is intact, the single currency may stay well supported in the next days. Otherwise, the bullish cycle from 1.0820 support is likely to come to end.
Consequently, we will look for a bullish reaction in the Euro around 1.1200/1.1160 levels, as the recent drop is considered as corrective only.
The British pound failed to overtake 1.4500 barrier and fell sharply, which keeps the med-term trend unchanged. The pair remains bearish as far prices keep trading below 1.4670 peak, and the last correction seen from 1.3830 low has ended.
Prices managed to break below 1.4220 support level, clearing the way to 1.4050 in the next sessions. Consequently, we believe that market participants may prefer to keep selling the pair on rallies with an invalidation above 1.4310 high.
Technically, the trend turned negative in the hourly chart and further decline is expected by now.
In the other side, only a daily close above 1.4310 resistance will weaken this negative outlook.
Prices rallied towards the hourly resistance located at 1.3135 level but failed to break higher as the bearish pressure remain strong in this pair.
As of today, traders should be aware that USD/CAD is trading sideways in the near-term between 1.3030/20 zone in the downside and 1.3135 level in the upside, which keeps our view flat. However, and looking at momentum indicators, we believe that a bullish reversal cannot be excluded especially if the pair closes above 1.3135 level this week.
In the meantime, we prefer to wait for an increase in the bullish momentum be to confirm any upside move in the near future.
Finally, it is important to note that this pair remain clearly oversold but we do not see any signs of bullish reversal by the time being. For med-term investors, 1.3400 peak is the bearish pivot in this pair and only a break above will confirm a big reversal in this pair, otherwise, 1.2820 will remain in focus.
The Aussie remains one of the strongest currencies in this quarter and we believe that the downside potential is limited in this pair. Consequently, traders should focus on 0.7410 daily support in this pair to measure the health of the current uptrend. In other words, as far as prices keep trading above this level, bulls will keep maintaining the control of this pair.
In the near-term, the focus will be on 0.7550 support level as a break below it will clear the way for a larger correction to the downside.
In the flipside, 0.7650/80 zone will continue to play as a strong resistance.
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.
The pair managed to bounce from the daily support located at 111.00 and succeeded to break above 112.00 hourly barrier. Consequently, the near-term has turned bullish and we expect the pair to rally further towards 113.00 resistance level.
Technically, the trend remains bearish in the daily chart as far as 114.00/50 zone is intact, and prices are stuck inside a consolidation triangle, which keeps our outlook flat.
To conclude, we will watch 113.00 level during the next hours from one part. In the other hand, 111.35 level has become the new support level in the hourly chart and prices may remain well supported above this level.
Gold faced strong resistance around 1260/1270 zone as bears succeeded to protect 1285 peak.
Technically, the yellow metal found strong demand around 1225 level during last week, which represents a key Fibonacci retracement (61.8% of the rally from 1190). In the meantime, this bounce was short-lived as we saw a clear decrease in the bullish momentum recently.
By now, we expect gold to fall in the next days in the direction of the hourly support of 1225$ per ounce from where we expect bulls to appear again. If prices manage to close below this support, then 1211 level will be the next level of interest.
In the other side, only a break above 1260/70 zone will confirm another leg higher towards 1285 peak. Otherwise, gold may continue to trade sideways to lower.
The New Zealand Dollar traded in a choppy manner during this month and has shown many false breakout signals, which kept us skeptical about the future price action.
Looking at the biggest picture, we will focus on a weekly close above 0.6880/0.6890 levels in the upside or below 0.6550 support in the downside to confirm the next directional move in this pair. In the near-term, we prefer to stay away and wait for clear signs of breakout/down.
As of today, the nearest demand level stands at 0.6690 level and may provide some support to prices, while 0.6740 peak is seen as the hourly resistance.
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