The Euro continue to trade in a tight range between 1.1160 and 1.1220 level as traders awaits a strong catalyst to move the pair.
As of now, we maintain the same view in this pair as the med-term downtrend remains intact, the possibility of a downside breakdown still valid especially if the pair breaks below 1.1160-40 zone.
Moreover, 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.
In the near-term, the focus will be on 1.1220-40 levels in the upside and 1.1160-40 in the downside. A break below the support zone should expose 1.1060 level, while a daily close above the resistance zone will confirm another leg higher in the pair.
The British pound turned bullish in the hourly chart as prices broke above 1.4185 hourly resistance, confirming a bullish reversal in the short-term.
Moreover, bears did not manage to push prices below 1.4050 major support (Pre-FOMC low), which increase the probability of a higher move towards 1.4340 level as it represents the 61.8% Fibonacci retracement of the recent decline from 1.4500 peak.
Looking at the short-term technical picture, we expect the pair to rise further above 1.4300 mark before to find strong sellers. Meanwhile, as far as prices keep trading above 1.4195-1.4175 zone, the outlook will remain positive.
In the other side, a break below 1.4195 level will change this view and signal more weakness in this pair.
The pair failed to break above 1.3290 hourly resistance and fell below 1.3200 mark during yesterday’s U.S trading session.
Technically, we are seeing the downside as a correction from 1.3290 level, and we expect 1.3135 former resistance to act as a strong support by now. In the near-term, 1.3220 is the hourly resistance level and a break above it will signal that this correction is over.
Actually, the remains bearish in the daily chart as far as 1.3400 peak is in place, but we still look for another leg higher in the hourly chart before downside pressure to resume.
In sum, our focus is on 1.3130-60 levels in the downside and 1.3220 in the upside.
The Aussie keep trading sideways to lower in the hourly chart, and prices did a re-test of 0.7570 broken support as mentioned in our previous technical chart.
Technically, the pair should find strong sellers around this level and prices are likely to fall towards 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.
In the meantime, we need an hourly close below 0.7490-0.7475 zone to confirm the decline in this pair. Otherwise, prices may remain steady and the pair will continue to trade sideways.
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.
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.
Gold reached a strong support around 1211 level and should see some demand in the near-term.
Technically, the yellow metal broke below 1225 support level, which represents a key Fibonacci retracement (61.8% of the rally from 1190), which put gold under pressure in the hourly chart.
Traders should be aware that this level is the last station before to reach the weekly support of 1190$, and should be watched very carefully in the coming hours.
In the other side, 1225 former support is considered as a resistance zone by now and only an hourly close above it will confirm another leg higher towards 1240 level. 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 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.
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