Dollar index

The U.S Dollar failed to overtake 96.00/96.40 daily resistance zone and has showed a double top formation around 96.70 high in the hourly chart, which may lead to a downside correction in the coming hours.

Technically, and looking at the weekly chart, the U.S Dollar is likely to remain under pressure below 98.50 peak, but looking at the recent price action traders should wait for a daily close below 95.00 psychological support to confirm another extension to the downside. As of now, the index is neutral in the hourly chart and it is preferable to wait for either a clear break above 96.40 resistance or 95.00 support to confirm the next directional move.

EUR/USD

The Euro keep fighting near the daily resistance zone located between 1.1105 and 1.1135 levels and for the time being, the trend remain neutral in the hourly chart. However, the daily chart is bearish and therefore the upside potential is likely to remain limited below 1.1190 peak.

In the flipside, the focus should be on 1.1040 support, as a break below it should expose 1.0970 area.

Finally, 1.1090 is the next level of interest for bulls as it represents the short-term barrier for the Euro and as far as this level holds, the single currency is likely to remain under pressure.

GBP/USD

The Sterling rallied towards the daily resistance zone located near the 1.3500 psychological barrier before to retreat sharply as BoE Carney’s said that further easing measures are likely beginning from early summer, and by now we should see a resumption of the selling pressure in cable.

From a technical standpoint, another dip is likely in the coming days that can extends to as low as 1.3045 level but for this scenario to be valid, prices should continue to trade below 1.3780 peak. Otherwise, a larger correction may begin in the pair.

To summarize, the pair remain bearish on a med-term basis as far as 1.3780 peak is in place, consequently, the recent rally is considered as corrective only.

USD/JPY

The pair broke below the yearly lows of 103.50 opening the way for a test of the psychological barrier around 100.00 handle. Technically, the pair remain bearish from a med-term as far as 106.90 peak is in place.

Yesterday, we have a seen a re-test of 103.25 hourly resistance followed by a downside reaction, which confirms that the bearish pressure still intact. In the flipside, a break below 100 level will expose 98.00-96.00 zone.

From a short-term view, the pair is trading sideways between 103.25 resistance in the upside and 101.40 in the downside, in the meantime, and a daily close outside of this range bound will confirm the next leg in this pair.

GOLD

Gold found strong demand near 1212 support level and rallied towards the hourly resistance level of $1335 per ounce, which is considered as strong barrier for short-term price action.

Therefore, we will focus on this level today, as a break above it will expose $1342 area. In the daily chart, the trend remain bullish, as we have seen a weekly close above 1307 resistance, and for the time being gold should remain steady as far as prices keep trading above 1326 level.

AUD/USD

The pair continue to gain some ground as commodity currencies strengthened recently. As of now, prices turned higher and the Aussie should test as high as 0.7500/15 in the coming sessions, after prices succeeded to overtake 0.7450 resistance level.

As of today, we will focus on 0.7480 resistance, and a daily close above this level should confirm another extension higher in the direction of the mentioned above zone.

In the other side, only a breakdown below 0.7375/40 support zone will put the pair under pressure again.

USD/CAD

USD/CAD retreated from 1.3100 weekly resistance as mentioned yesterday and looking at the RSI indicator, we can see that the bearish divergence in the hourly chart remain valid as prices managed to break below 1.2960 support earlier this week.

Looking at the technical levels, the focus should be on yesterday’s low at 1.2915 level and if the momentum continue to weaken, a re-test 1.2895 daily support is likely in the next hours.

In the other hand, only a daily close above 1.3015/40 zone should confirm a bullish reversal in the pair.

NZD/USD

The Kiwi managed to bounce from 0.6960 daily support and by now, prices are testing a strong barrier, which stands at 0.7165 level.

Therefore, another leg higher is likely to begin in this pair and the recent corrective wave can be over. In the near-term, 0.7090/80 is the new support zone as it represents a former broken resistance and the pair should remain well supported above it.

 

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