The Australian Dollar traded in a tight range yesterday and did an attempt to overtake 0.7400 psychological barrier but failed as bears keeps the control of the pair in the near-term.
As of now, we believe that the trend has become bearish in the hourly chart and as far as 0.7420/50 zone is intact, the pair is likely to fall further in the direction of 0.7315 support level in the next hours.
In the flipside, a daily close above 0.7420 level will cancel this negative view.
USD/CAD continue to trade higher after breaking above 1.2770 hourly resistance.
However, the current upside move is likely to be short-lived as prices approaches the 61.8% retracement of the entire drop seen from 1.2980 peak. This level stands around 1.2860 and we may see a negative reaction around this resistance in the coming hours.
Therefore, we expect the recovery to continue for the time being, but traders should be aware that this correction is likely to end soon.
The Kiwi lost its bullish momentum in the hourly chart as prices faced heavy selling pressure near the weekly resistance of 0.7150 level.
Meanwhile, the daily trend still intact and the pair remain positive. Actually, the focus is on 0.7020-0.6990 zone, which is likely to act as a strong support in the next days.
Therefore, we maintain the bullish outlook in this pair and only a daily close below 0.6890 support will weaken this view.
Gold rally stalled around 1288$ per ounce as this level represents the last station before 1294 critical barrier.
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 beginning of this week as mentioned earlier and by now, we expect a move towards 1276-1273 zone before a bounce to happen.
To conclude, the trend remains strongly bullish and we believe that the downside potential is likely to remain limited as far as 1268 low is intact.
The Euro remain under pressure in the near-term, and another leg to the downside is expected, as far as 1.1320 peak is in place.
The next level of interest stands at 1.1220 followed by 1.1170 in extension, while the major support stands at 1.1135.
Looking at the technical picture, the trend remains positive in the daily above 1.1135 while in the hourly chart the pair turned bearish and may see further losses towards the mentioned above support levels.
The Sterling remain under pressure ahead of the Brexit referendum next week.
In the daily chart, the pound broke below the consolidation triangle and prices managed to overtake 1.4300 major support, reinforcing the bearish pressure in the near-term.
In addition, a daily close below 1.4115 low may clear the path for further decline in the direction of 1.4085-1.4000 monthly support zone.
In the other hand, 1.4360 should continue to play a strong barrier in this pair.
To conclude, the trend remain obviously bearish in this pair but traders should be aware that the increase of volatility might create choppy trading environment that can lead to sharp moves in both sides.
The pair resumed the decline as bearish momentum increased significantly ahead of the FOMC meeting minutes tomorrow.
Technically, USD/JPY managed to break below 106.30 daily support as expected and therefore, this breakdown is likely to send prices to as low as 105.50 weekly support followed by 105.00 psychological support in extension.
Finally, the trend remain bearish in this pair and as far as 107.30 peak is in place, further weakness is expected.
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