The Euro bounced strongly from 1.1140/60 hourly support zone and rallied to above 1.1300 mark after FED chairwoman Janet Yellen said that QE4 cannot be ruled out, which triggered a big selloff in the U.S Dollar.
Technically, the Euro remains inside the symmetrical triangle mentioned in our previous analysis and we believe after yesterday’s close that chances for a breakout higher has increased.
However, traders should focus on 1.1345-1.1375 levels as a break above this resistance zone will confirm a big reversal in the Euro and should clear the way for another leg higher towards 1.1500 psychological barrier.
In the near-term, 1.1280 represents the hourly support while in the daily chart, as far as prices keep trading above 1.1160-40 support zone, the outlook will remain positive.
The British pound rallied as expected after breaking above the hourly resistance zone located between 1.4310-1.4340 levels.
The pair jumped above 1.4400 psychological barrier and bulls may try to target 1.4500 peak in the coming sessions.
Looking at the near-term technical picture, we believe that the pair should face strong resistance around 1.4450-1.4470 level as it represents a strong supply zone coupled with the intersection of the bearish trend line drawn from 1.4670 peak.
Consequently, we expect a short-term correction that can reach 1.4365-1.4330 levels before to see another bounce in the pair.
Overall, the hourly trend is strongly bullish by now and the pair may continue to trade higher as far as 1.4260 low is in place.
In the other side, a break below this level will weaken this positive view.
The pair failed to break above 1.3290 hourly resistance and fell sharply during yesterday’s U.S trading session.
Technically, the trend remains bearish in the daily chart as far as 1.3400 peak is in place, and prices continue to print lower lows / lower highs, which reinforce the probability of a continuation lower.
In the short-term, the nearest resistance stands at 1.3080 level, while 1.3020 zone should provide some support to the pair.
In sum, the downside pressure remain strong and an hourly close below 1.3020 level will expose last week lows around 1.2920.
The Aussie reversed higher as bulls succeeded to keep prices above 0.7500 psychological support.
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
With that in mind, we believe that the downside potential is limited in this pair and actually, prices are heading towards 0.7700 resistance level followed by a key resistance around 0.7750 from where a deeper correction may begin.
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.
In addition, we saw a strong rejection from 113.80resistance as it represents the pre-FOMC high. As of now, the upper side of the bearish triangle remains intact and the psychological resistance of 114.00 continue to act as a strong barrier. In the other hand, 112.30 level has become the new support level in the hourly chart and we will watch bulls reaction from this level today.
Gold bounced as expected from the strong support around 1211 level and should see some strength in the near-term.
Traders should be aware that as far as the weekly support of 1190$ is in place, upside pressure is likely to dominate the market sentiment.
From an intraday standpoint, 1230 is the nearest support while 1240 is seen as the hourly resistance.
To summarize, downside correction seen last week has ended and we believe that gold prices are ready for another wave higher that can target 1260 level in the first degree. In the flipside, a break below 1215-1211 support zone will cancel this outlook.
Finally, the New Zealand Dollar managed to break higher from a 7-month range trading.
Looking at the biggest picture, the focus was on the weekly resistance zone of 0.6880/0.6900 levels in order to confirm the next directional move in this pair.
Earlier this morning, the pair broke above 0.6900 psychological barrier, which confirmed a big rally in kiwi. Consequently, the outlook is bullish in this pair and a rally towards 0.7000-0.7100 is likely to happen.
In the flipside, 0.6880-0.6840 levels are considered as the hourly support zone, and should give a strong boost to the pair in the near-term.
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