The Australian Dollar found strong resistance at 0.7490/0.7500 zone as mentioned in our previous report and by now our view turned flat in the near-term.
Looking at the recent price action, we believe that a re-test of 0.7365 hourly support is likely as far as prices remain below 0.7500 peak.
Therefore, we believe that a bullish cycle has ended in the pair and another leg lower should be seen in the near-term.
USD/CAD bounced from 1.2650 weekly support and managed to overtake the near-term resistance of 1.2720, which may clear the way for a re-test of the hourly resistance zone located between 1.2770/1.2800 levels.
Therefore, we expect the recovery to continue in the coming hours towards the mentioned above zone before to see strong sellers again.
In the flipside, 1.2710 represents the nearest support and prices may remain steady above this level in the short-term.
The kiwi managed to rally as expected, clearing the way for as high as 0.7150 weekly resistance zone.
Technically, the pair remain positive and should continue to trade higher in the direction of 0.7230 area. Looking at momentum indicators, we can see that the pair is heavily overbought but in the meantime we did not saw any turning signal for the time being, which keeps the outlook positive in Kiwi.
Therefore, we will focus 0.7150 resistance today while in the downside 0.7070/50 is seen as a strong support zone in the near-term.
Gold rally stalled at the resistance zone mentioned previously around 1263$ per ounce as profit taking began ahead of the weekly close.
From a technical standpoint, the med-term trend has turned bullish and as far as 1200 psychological support continue to support prices, a break above 1300 handle remain possible over the few coming weeks.
Therefore, we expect gold to keep trading higher for the rest of the month, meanwhile, a correction lower is likely in the near-term and may reach as low as 1250-1248 levels before the upside resume.
To conclude, the trend remain strongly bullish and we believe that the downside potential is likely to remain limited as far as 1235 low is intact.
The Euro has reached the 61.8% Fibonacci retracement of the recent drop seen from 1.1610 peak, which can lead to a downside correction in the coming hours.
This level stands at 1.1420 and is located near the weekly resistance of 1.1450
Looking at the technical picture, the trend remain bullish in the daily chart as far as 1.1135 low is in place, while in the hourly chart the pair is approaching its short-term support at 1.1330 and we will focus on the market reaction around this level.
Finally, a daily close below this support may call for a larger correction to the downside before the upside trend resume.
The Sterling dropped below 1.4500 psychological support and extended the decline to reach 1.4445 level during the European trading session.
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. Moreover, volatility remains at 7-year high and traders should manage their risk ahead of the Brexit referendum day.
As of now, we prefer to stay from this pair until we see a clear break in the coming days and technical levels of interest are 1.4600 peak in the upside and 1.4350 to the downside.
The pair resumed the decline overnight as bearish momentum increased significantly ahead of the FOMC meeting minutes due next week.
Technically, prices are testing the daily support of 106.30 for the second time this week and looking at oscillators indicators, we believe that a breakdown is likely in the coming hours, which may send prices to as low as 105.50 zone.
Finally, the trend remain bearish in this pair and as far as 107.30 peak is in place, further weakness is expected in this pair.
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