DXY (Dollar index)
The Dollar index faced strong resistance around 96.00 psychological barrier, which represents the 61.8% Fibonacci retracement of the entire decline seen from 98.60 peak.
During last Friday, the Greenback posted its biggest daily decline in 2016 following a catastrophic jobs report on May.
Technically, the U.S Dollar is likely to remain under pressure in the week ahead and should test its daily support located at 93.65 level.
Actually, the near-term trend turned bearish again and the index can reach as low as 93.10 zone before to see some demand in the coming days.
The Euro traded in a tight range yesterday and we can see that prices remain steady above 1.1325 hourly support, which keeps the bullish trend intact in the near-term.
Looking at the technical picture, a continuation higher is likely in the coming hours in the direction of 1.1400 psychological barrier, followed by 1.1450 daily resistance in extension.
In the flipside, 1.1320-1.1290 zone may provide strong support to the single currency.
The Sterling managed to bounce from yesterday’s low, which keeps 1.4330 weekly support intact. Moreover, prices broke above post-NFP high at 1.4580 level, reinforcing the recent upside move.
In the daily chart, the pound is trading inside a consolidation triangle and it is preferable to wait for prices to exit this sideways pattern before to confirm the next directional move in this pair. However, we believe that the pair is set for another rally in the coming days and the outlook will remain positive in the near-term as far as prices keep trading above 1.4425 level.
As of now, we will wait for a daily close above 1.4580-1.4600 zone to validate this positive signal. Finally, and looking at the important barriers for the Sterling, the next level of interest stands at 1.4650 followed by 1.4720 in extension while in the downside, the pair may remain well supported above 1.4492 low.
USD/CAD fell sharply after breaking below 1.2900 handle. By now, the pair is testing a major support at 1.2765 and we should see some stabilization in the next hours. However, momentum indicators still pointing for further weakness, which keeps the pair under pressure in the near-term
Looking at the recent price action, the pair turned bearish in the hourly chart and we believe that the upside potential is likely to remain limited below 1.2840/50 resistance zone.
The kiwi succeeded to preserve 0.6660 weekly support and managed to rally strongly after breaking above 0.6840resistance zone
Actually, traders should focus on 0.6970 hourly resistance, as a break above it is likely to expose 0.7050 peak. Conversely, if the pair correct lower in the beginning of the week then we expect buyers to appear around 0.6880/40 support zone.
Technically, the pair remain positive and should continue to trade higher in the short-term unless we see a daily close below 0.6840 support.
Gold traded sideways during yesterday and actually, we are waiting for a clear break outside of the hourly range located between 1250 level in the upside and 1240/1238 zone in the downside to confirm the next path for gold.
From a technical standpoint, another leg higher is likely in the coming weeks as far as 1190 low is in place while in the near-term, 1200 psychological support continue to support prices.
Therefore, the yellow metal remain positive and bulls may continue to push prices higher in the direction of 1252-1264 resistance zone in the following days.
In the other side, 1238$ per ounce represents the hourly bullish pivot and prices should remain well supported above this level.
The Australian Dollar soared following RBA’s monetary policy meeting as the bank decided to leave interest rates unchanged.
Technically, the trend turned bullish in the near-term as prices managed to overtake 0.7400/20 resistance zone and for the time being, the focus should be on 0.7490 as it represents a broken former support, which coincide with the 50% retracement of the recent decline seen from 0.7835 peak. Therefore, the pair may remain bullish in the short-term unless we see a daily close below 0.7365 support.
The pair sold-off sharply around 111.45 resistance level, which coincide with the 61.8% Fibonacci retracement of the last decline from 114.85 peak.
The drop was fueled by the aggressive shift to safe haven assets during last Friday after the recent jobs report from the U.S has pushed investors to re-adjust their forecasts regarding FED’s June rate hike.
As of now, the pair managed to bounce near 106.40 daily support as mentioned in our previous report and prices should extend the rise in the direction of 108.10 area before to find strong sellers again.
In the flipside, 107.20 represents the hourly bullish pivot and a break below it will confirm that the selling pressure has resumed.
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