DXY (Dollar index)
The Dollar index begin to show some signs of weakness as we saw some supply near the 94.50 resistance zone mentioned in our previous report.
As of now, the near-term trend remains bullish in the U.S Dollar and traders should focus on 93.80 hourly support from where we can see some demand. In addition, the bullish pivot stands at 93.20 level and only a break below this level will put the Greenback under pressure. Otherwise, the index should continue to trade sideways to higher in the next hours.
After trading sideways during yesterday, the Euro managed to bounce above 1.1400 handle reinforcing the probability of another leg higher in the near-term. In addition, the Euro is testing the hourly resistance zone located at 1.1420 level and we should wait for a 4hours candle close above this level to confirm a bullish reversal in the short-term.
Technically, the trend remain bullish in the daily chart and prices found strong demand from 1.1370 support highlighted earlier as it represents the 61.8% retracement of the recent rally seen from 1.1217 low.
Therefore, the pair should continue its recovery towards 1.1450 area followed by 1.1480 peak in extension.
The British pound keep fighting for a clear direction in the near-term as prices remain stuck inside a wide range between 1.4480 peak in the upside and 1.4370-85 zone in the downside.
Therefore, we prefer to wait for the future price action to confirm the next directional move in this pair. Meanwhile, and looking at the daily chart structure, we believe that as far as prices keep trading below 1.4542 peak, which represents the post-FOMC high, the British pound is likely to remain under pressure.
In the hourly chart, 1.4480 zone continue to act as a strong barrier while a break below 1.4375 zone will trigger another sell-off in the pair in the direction of 1.4300 psychological support.
USD/CAD traded lower during the European trading session and retraced 61.8% of the recent rally seen from 1.2784 low before to bounce back during the open of the U.S session.
However, if bears manage to push prices below 1.2870 support level again, then we expect another wave of weakness in the direction of 1.2830 support zone.
In the flipside, a daily close above 1.2940 will clear the path for 1.2980 resistance followed by 1.3012 peak in extension.
The kiwi jumped from 0.6710 daily support overnight, and managed to reach 0.6820 hourly resistance, which is seen as strong barrier in the short-term.
As of now, we will focus on this level for the next couple of hours as a break above it may expose 0.6850 resistance. In the meantime, as far as 0.6880 peak is in place, the pair may resume in the decline in the 4hours chart as this level coincide with the post-NFP high and should cap the current rally.
In the other hand, 0.6780 level may continue to provide some support for the kiwi in the near-term.
The pair fell near the 109.45 resistance zone mentioned in our previous technical report, which represents the 61.8% retracement of the post-BOJ decline and from where we were expecting the recent ally to fade.
As of now, we will focus on 108.30-108.50 support zone, as the pair is likely to remain well supported above this support for another extension higher.
In the flipside, a break below this support zone will put the pair under pressure again and we may see a drop towards 108.00 mark in the coming days.
Gold bounced from 1258 support level as expected as it represents the 61.8% retracement of the recent decline seen from 1304 peak. As of now, the trend is flat in the hourly chart while in the daily, the yellow metal remain bullish as far as 1227 low is in place.
Moreover, prices have showed a bullish hammer candle, which reinforces the positive view.
Finally, the outlook remains positive in the yellow metal as prices continue to preserve the higher lows structure that began from 1208 low and only a daily close below 1271 support can clear the way for another leg lower that can reach 1263-1258 zone before to see a strong bounce again.
Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.