During last week, the Euro succeeded to break above the symmetrical triangle that comes from 1.1497 peak, which brought to the table a strong bullish signal.
In addition, the weekly close was above 1.1375 daily resistance, reinforcing the upside pressure. As of the week ahead, the single currency is likely to continue trading higher towards 1.1500 psychological barrier as far as 1.1145 low is in place.
Meanwhile, a short-term correction to the downside cannot be ruled out and the pair may re-test 1.1290-1.1250 support zone before to begin another leg higher in the coming days.
To summarize, the outlook is bullish in this pair by now, and as far as prices keep trading above 1.1145, the upside pressure will remain strong.
The British pound traded higher during the beginning of last week before to give back the majority of its gains by the end of the week.
Technically, the trend remains bearish in both the weekly and the daily charts and as far as 1.4670 peak is intact, the pair may continue to head south. In the near-term, 1.4425-1.4460 represents the hourly resistance zone and the upside potential is likely to stay limited below this zone.
In the other side, 1.4170 is the level of interest in the downside, followed by 1.4110 level, while a break above this level is likely to trigger an acceleration lower towards 1.4053 crucial support.
The pair bounced strongly by the end of last week around 1.2860 level as prices approached the weekly support of 1.2820.
Moreover, prices rallied and succeeded to break above 1.3010 hourly resistance confirming a bullish reversal in the short-term. Meanwhile, USD/CAD found strong resistance around 1.3150 level, which represents the 61.8% retracement of the recent decline seen from 1.3296 peak.
As of now, we expect some stabilization in the pair and if prices manage to decline again, then 1.3010 zone is likely to act as a strong support in this pair. In addition, a break below this level will expose 1.2960 in extension.
The Aussie did another attempt to close above 0.77 psychological barrier but failed as profit taking has increased due to the month end.
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.
In the near-term, we believe that a move lower is likely in the following hours, especially if the pair drops below 0.7614-0.7637 support zone.
In addition, a clear bearish divergence has emerged in the hourly RSI indicator, which reinforces this downside correction scenario. In the flipside, the pair need to close above 0.7690 zone to do another rally.
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 the 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 the week ahead, we continue to watch 111.00-110.60 support zone carefully, as a break below it, should trigger a new sell-off towards 110.00 psychological support.
Gold bears maintained 1240-1244 resistance zone and succeeded to push prices below 1223 hourly support after we saw strong economic data from the U.S last Friday.
Technically, prices remain supported by 1210 support level, and as far as this level holds, gold can do another leg higher towards 1245 peak.
In the meantime, and looking at the wave structure from 1285 peak, we can see that the yellow metal continue to print lower/highs – lower/Lows, which keeps the near-term trend to the downside.
Finally, it is preferable to wait for either a daily close above 1245$ in the upside or below 1210$ per ounce in the downside to confirm the next directional move in gold.
The New Zealand Dollar managed to end last month 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.
Last week, the pair did an attempt to break above this week high around 0.6965 but failed again. In the same time, the pair continue to trade above 0.6880 support level, consequently, the outlook remains bullish in this pair and a rally towards 0.7000-0.7100 is likely to happen.
In the flipside, 0.6830level represents the hourly support, and should give a strong boost to the pair in the near-term.
In sum, the trend is bearish and as far as the pair keep trading above 0.6660 low, another leg higher is expected soon.
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