USD/CAD fell the European trading session and retraced 50% of yesterday gains before to bounce strongly reinforcing the bullish outlook in the near-term.
Actually, we expect further gains in the pair as prices have confirmed a bullish reversal during yesterday. Consequently, the short-term trend has become bullish and as far as prices keep trading above 1.2592 low, another rally towards 1.2980 zone is likely, especially if the pair manage to close above 1.28800 peak.
While in the near-term, 1.2920 is seen as the next barrier in this pair.
The British pound faced a significant increase in volatility today as we saw a sharp sell-off to as low as 1.4443 level before a strong bounce to above 1.4500 mark again.
However, and looking at the hourly chart, the trend remains bearish in the sterling as prices continue to respect the lower/highs-lower/lows structure seen from 1.4573 peak.
Therefore, another decline is likely in the coming hours in the direction of 1.4425-1.4380 zone before to see strong buyers again.
To conclude, the view turned bearish in the near-term and only a break above 1.4573 will confirm the end of the current correction.
The pair did another attempt to break above 107.40 hourly resistance but failed as bears continue to dominate this pair.
In the meantime, traders should be aware that the pair has showed some signs of recovery in the near-term and as far as 106.25 low is in place, another leg higher during the next hours cannot be ruled out.
Meanwhile, we still need a clear confirmation which will come with the break of 107.40 peak.
Otherwise, USD/JPY should continue to trade sideways to lower as per the dominant trend.
The Euro extended the decline today after breaking below 1.1450 support level.
Actually, we believe that the pair is heading towards 1.1370 support from where we expect a bounce in the pair especially if the U.S jobs figures comes out below expectations tomorrow.
Looking at the daily chart, the trend remains bullish as far as 1.1217 low is in place but we are seeing a deeper correction in the single currency before the upside resume.
In the flipside, 1.1442 represents the hourly resistance level and only a break above it will call for the end of the current bearish cycle and another re-test of 1.1500 zone is likely to begin. Otherwise, the Euro will remain negative in the near-term.
The Australian Dollar resumed the decline and fell below 0.7500 handle to confirm a negative signal in the daily chart.
As of now, we are looking for further weakness in this pair in the direction of 0.7400 weekly support as far as 0.7580 peak is in place.
To conclude, we believe that the Aussie is likely to remain under pressure in the short-term.
The New Zealand failed to break above 0.7055 daily resistance for the second time in a row, which may signal a potential double top reversal formation in this pair.
Conversely, the trend remains bullish in the daily time frame, however, we still need a daily close above 0.7050 zone to confirm another leg in the direction of 0.7100 barrier.
Finally, and despite the positive view in the daily chart, the hourly structure still flat and we will wait for a clear pattern formation before to confirm the next directional move in the kiwi.
Gold continue to lose momentum in the near-term as prices dropped temporary below 1271 hourly support today.
However, prices did not manage to close below this low in the hourly chart and traders should continue to focus on this support level as it represents the hourly bullish pivot in the yellow metal.
Technically, as far as this level holds, the downside potential is likely to remain limited in gold.
Finally, the outlook remains positive in the yellow metal as prices continue to preserve the higher lows structure that began from 1208 low and a break below 1271 support can clear the way for another leg lower that can reach 1263-1258 zone before to see a strong bounce again.
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