The Euro managed to break below 1.1370 support zone, bringing an additional bearish signal in the near-term. Actually, we believe that the single currency is likely to fall further in the direction of 1.1310-1.1300 area in the next hours before to see some demand.
Therefore, our view remain bearish and as far as 1.1415 peak is in place, the single currency may stay under pressure for the time being.
Looking at the daily chart, the recent decline can be considered as a correction if 1.1217 low holds, which keeps the outlook positive over the med-term, while a daily close below this level will put the euro under pressure again in the following weeks.
The Sterling traded lower following London open earlier today, and has reached the daily support of 1.4380 level before to bounce back above 1.4400 handle again.
Looking at the hourly chart, the resistance zone of 1.4530/40 remains intact, which keeps the view bearish in this pair. In the meantime, bulls continue to protect 1.4380/70 support zone and we should wait for a 4hours close below these levels to confirm another extension lower towards 1.4325-1.4300 zone.
Finally, the pair continue to respect the lower highs/ lower lows structure that began from 1.4770 high reinforcing the downside trend in the short-term.
USD/CAD bounced from 1.2780 support level and prices are testing the hourly resistance of 1.2875 by now. Traders should wait for the price action around this level to confirm a break higher in the direction of 1.2920 peak.
Conversely, if bears manage to reverse the pair lower then another re-test of 1.2830 support level is likely.
From a technical standpoint and keeping in mind the strongest close seen during last week, we believe that the pair should remain supported above 1.2780/60 support zone and only a break below it will clear the way for an acceleration to the downside.
The kiwi remains steady above 0.6800 mark but traders should be aware that the pair has reached a strong resistance level, which stands at 0.6840 and from where we expect strong sellers to appear.
As of now, we will focus on this level for the next couple of hours as a break above it may expose 0.6880 resistance. In the meantime, if this resistance holds, then the pair may resume in the decline in the direction of 0.6780 support.
The pair keep trading sideways in the hourly chart between 108.30support zone and 109.45resistance area and traders should wait for a clear break outside of this range to confirm the next directional move in the pair.
However, momentum indicators remains positive in the near-term, which keeps the odds in favor of a breakout instead of a breakdown. In this case, a potential break of 109.50 area will clear the path for a fresh rally in the direction of 110.00 psychological barrier.
In the other hand, a slide below 108.30 zone will call for 107.50 level.
Gold still strong in the near-term as bulls keep buying the yellow metal on dips creating a higher lows inflection points.
In addition, the yellow metal remains bullish in the daily chart as far as 1227 low is in place and we saw a strong reaction from the 61.8% Fibonacci retracement of the recent rally from the recent low, which reinforces the positive view.
In the near-term, 1279-1281 zone continue to play as strong resistance zone. In the other side, a break below 1265 support will expose 1258 zone in the coming days.
The Australian Dollar has become the worst performer currency in the last two weeks and looking at the technical picture, we expect further weakness in the direction of 0.7240 support level.
Moreover, the pair is likely to remain under pressure as long as prices continue to trade below the 0.7400 resistance zone. This weakness came on the back of the recent rate cut from the Reserve Bank of Australia, as the central bank is looking for further easing measures in the coming months, which is likely to weigh further on the Aussie.
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