The Euro continue to edge higher as bulls maintain the control of the single currency.
Technically, the Euro is trying to break higher from the symmetrical triangle mentioned in our previous analysis and looking at momentum indicators, we believe that chances for a breakout higher has increased. Meanwhile, the confirmation will come with a daily close above 1.1375-1.1400 resistance zone.
If the pair manage to break above this zone, then a big reversal in the Euro is likely to be in place 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 reached the hourly resistance zone located between 1.4450-1.4470 zone, and saw strong sellers appearing as this zone represents the last station before to reach 1.4500 psychological barrier.
Surprisingly, the pair weakened yesterday and fell to correct an hourly cycle that began from 1.4194 low.
Looking at the near-term technical picture, we believe that the pair should reverse higher from the 50-61.8% Fibonacci retracements from 1.4194 low, which stands between 1.4327 and 1.4297 levels.
Consequently, we expect the upside pressure to renew and another test of 1.4470 high is expected.
To conclude, the hourly trend remains bullish by now and the pair may continue to trade higher as far as 1.4194 low is in place.
In the other side, a break below this level will weaken this positive view.
The pair extend its losses as traders keep selling the pair on rallies as far as 1.3290 hourly resistance is in place.
Prices continue to print lower lows / lower highs in the near-term and we saw another attempt to break below 1.2920 support that failed yesterday but we still believe that further weakness is due in this pair as bears are likely to keep pushing the pair towards 1.2820 weekly support.
In the short-term, the nearest resistance stands at 1.3080 level, while 1.2920 level is the last chance for bulls ahead of Canada GDP later today.
In sum, the downside pressure remain strong and an hourly close below 1.2920 level will expose 1.2820 in the next days.
The Aussie reached an important psychological barrier at 0.7700 level, from where we can see some profit taking in the pair.
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 0.7750 resistance level especially if we see a break above yesterday’s high.
To summarize, the trend remains bullish in this pair but regarding a risk/reward standpoint, our view is flat in the short-term.
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 with a light preference to the downside as per the daily trend.
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. For today, we continue to watch 112.30 support level carefully, as it represents a strong level in the hourly chart and a break below it, should trigger a new sell-off towards 111.60/40 zone.
After a strong bounce from 1211 support level, gold rallied to reach 1240-1244 hourly resistance zone, from where we saw strong sellers.
In addition, this zone coincide with the bearish trend line intersection that comes from 1285 peak, and consequently gold may remain under pressure below 1245$ per ounce.
From an intraday standpoint, 1229 level is the nearest support and should see some buyers today if reached.
To conclude, we believe that the 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.
However, a break above 1240-45 zone is needed to confirm the next wave up in the direction of 1260$ per ounce.
The New Zealand Dollar managed to close the day above 0.6900 major resistance, confirming a 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.
Yesterday, 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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