EUR/USD

The Euro continue to trade sideways in the daily chart as prices remain inside the Symmetrical triangle mentioned in the previous reports. It is important to note that Symmetrical Triangles can breakout in either direction since this consolidating pattern has equal sentiment driving the formation.

Meanwhile, and regarding the med-term downtrend in this pair, the possibility of a downside breakdown can increase due to the overall momentum of bearish sentiment supported by the potentially significant amount of overhead resistance in the chart.

Recently, we saw a failure around 1.1340 level, which is few pips away only from the daily resistance located at 1.1375 peak, which keeps this technical structure unchanged.

As for this week, traders should focus on 1.1060 support in the downside and 1.1240 resistance in the upside, as a break above or below one of those levels will confirm the next directional move in this pair.

Actually, our view is neutral and we prefer to wait for price action to develop during the next days.

Support: 1.1170-1.1125-1.1060

Resistance: 1.1200-1.1240-1.1260

GBP/USD

The trend remains bearish in the Sterling as far as prices keep trading below 1.4670 peak. In the other side, the hourly trend is flat, as bears did not manage to push prices below 1.4050 major support (Pre-FOMC low).

Looking at the short-term technical picture, the pair broke below the bullish canal in the hourly chart and consequently, we expect prices to remain under pressure. In the opposite, we will focus on 1.4185 resistance followed by 1.4240 peak in extension, from where we expect sellers to appear. If the pair succeed to overtake this resistance zone, then a bullish reversal is likely to be in place, and should clear the way for a big rally in the next days.

To conclude, the focus will be on 1.4050 in the downside and 1.4185-1.4240 zone in the upside for the week ahead.

Support: 1.4105-1.4050-1.3915

Resistance: 1.4185- 1.4240-1.4310

USD/CAD

The pair rallied strongly after breaking above 1.3135 resistance level to reach 1.3290 hourly resistance level as mentioned earlier. By now, sellers may try to protect 1.3400 peak and we should see a reaction lower soon. In the meantime, as far as 1.3020/30 support zone is in place, the pair should remain well supported.

Technically, if we see a downside correction from 1.3290 level, then we will expect 1.3135 former resistance to act as a strong support by now. In the near-term, 1.3220 is seen as support followed by 1.3180 level in extension.

Actually, the pair keep printing higher highs/ higher lows, which keeps the bullish reversal scenario valid by now and a theoretical target around 1.3400 level seems realistic as far as 1.3030 low is in place.

In the other side, a break below this low should weaken this bullish view.

Support: 1.3220-1.3180-1.3030

Resistance: 1.3290-1.3350-1.3400

AUD/USD

The Aussie ended a bullish cycle in the hourly chart, and entered in correction mode in the short-term.

Moreover, the pair broke below 0.7550 support level, which cleared the way for a re-test of the hourly support zone located between 0.7410-0.7390 levels. With that in mind, we believe that the upside potential is limited by now, and any bounce is likely to be short-lived in this pair.

By now, the resistance zone is seen around 0.7535/60 zone and we expect a strong rejection around this resistance zone this week aiming for as low as 0.7400 level.

In the flipside, 0.7650/80 zone will continue to play as a strong resistance and the short-term outlook will stay negative below this resistance zone.

From a wider angle and 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: 0.7450-0.7410-0.7390

Resistance: 0.7535-0.7560- 0.7650

USD/JPY

The pair managed to bounce from the daily support located at 111.00 and succeeded to break above 113.00 hourly barrier. Consequently, the near-term has turned bullish and we expect the pair to rally further towards 114.25/50 resistance zone.

Technically, the trend remains bearish in the daily chart as far as 114.00/50 zone is intact, and prices remain stuck inside a consolidation triangle, which keeps our outlook flat.

Meanwhile, the preference is for the long side in the short-term as far as the pair keep trading above 112.30 low. Technically, the RSI indicator showed a bullish divergence around 111.00 support coupled with a potential with a triple bottom reversal pattern, which awaits confirmation.

For this week, we will watch 113.80resistance level as it represents the last barrier in this pair before the psychological resistance of 114.00, in the other hand, 112.30 level has become the new support level in the hourly chart and prices may remain well supported above this level.

Support: 112.30-112.15-111.40

Resistance: 113.80-114.25-114.50

GOLD

Gold found strong resistance around 1260/1270 zone as bears succeeded to protect 1285 peak.

Technically, the yellow metal broke below 1225 support level, which represents a key Fibonacci retracement (61.8% of the rally from 1190). Consequently, another extension lower towards 1211 support was expected as we saw a clear decrease in the bullish momentum recently.

Effectively, gold fell sharply and reached the hourly support of 1211$ per ounce, from where we expect strong bulls to appear. This level is the last station before to reach the weekly support of 1190$, and should be watched very carefully in the coming hours.

By now, we expect gold to continue to decline in the next days in the direction of 1200 psychological support, as far as prices keep trading below 1260-1270 zone. In addition, if prices manage to close below this support, then 1190 weekly support will be on focus again.

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.

Support: 1211-1200-1190

Resistance: 1260-1270-1285

NZD/USD

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 this week expected price action, the kiwi should see some demand around 0.6670/90 levels during the beginning of the week before to face another sell-off in the next days towards 0.6600 psychological support.

In the flipside, 0.6740 peak is considered as the hourly resistance and should continue to cap any advance in this pair.

Support: 0.6670-0.6600-06550

Resistance: 0.6742-0.6770-0.6790

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