30 September, 2016
The Euro continue to trade sideways inside a 100pips range located between 1.1285 to the upside and 1.1185 support in the downside as the lack of economic releases from the Eurozone weighs on liquidity.
Looking at the hourly chart, the pair still fighting to overtake 1.1235 barrier, which is considered as the near-term resistance for the single currency. The pair has showed a potential double top bearish formation around this level, however, a clear breakdown below 1.1185 is needed to confirm that bears have regained the control. Otherwise, the Euro may keep consolidating in the coming hours until prices manage to exit this range bound.
In the daily chart, the single currency remain under pressure below 1.1365 peak, and a daily close below 1.1185 support will confirm this negative outlook and send prices in the direction of 1.1100 handle while close above 1.1285 will confirm a bullish reversal.
The British pound keep fighting for a clear direction in the near-term and volatility is likely to increase in the coming hours, ahead of the U.S GDP figures.
From a technical standpoint, the Sterling remain positive in the hourly chart as far as 1.2950/35 support zone is in place. However, the pair lacks positive momentum for a sustainable bullish reversal, which can keep the upside potential limited in this pair.
In the near-term, the focus should be 1.2980 support as a break below it will bring the bearish pressure and can send the pair to as low as 1.2915 in the next days.
In the flipside, a daily close above 1.3030/1.3056 resistance levels can be the trigger for a move back up towards 1.3120 barrier.
After several attempts to break above 1357 hourly resistance that failed, prices turned lower again from the 61.8% retracement of the recent recovery seen from 1306 support reinforcing the negative outlook in the near-term.
Technically, gold turned bearish in the near-term as prices has shown five consecutive lower highs from the yearly peak of $1375, which increase the probability of further weakness in the coming days. As of now, $1320/1318 represents the short-term resistance zone and a clear breakdown below it, should trigger another sell-off in the coming hours.
To conclude, gold remain under pressure and the upside potential is likely to be limited below 1342 peak, while another dip towards 1306 support remain possible.
The pair managed to bounce near the 100.00 psychological support and broke higher overnight confirming a potential bullish reversal in the hourly chart.
The key technical resistance was at 101.25 and if prices retrace lower then we expect strong buyers to appear around this level for another leg to the upside. In the meantime, the pair has reached a strong barrier at 101.72 level, which represents the 50% retracement of the entire decline that began from 102.80 peak, therefore, prices may stabilize in the coming hours before the next directional move to happen.
To summarize, the trend remain bearish in the daily chart, while the hourly chart turned bullish as far as 100.45 low is in place, meanwhile, a move back to 101.25/101.00 area should give strong support to the pair.
Beginning with USD/CAD, the pair failed to break above 1.3280/1.3300 monthly resistance zone and turned sharply after prices dropped below 1.3194 support. The pair has reached a high of 1.3278 following crude oil inventories release before the sell-off begin. The move was fast because of the surprise effect following the output-cap deal and by now the pair the outlook has become strongly bearish in the short-term.
Technically, momentum indicators turned negative and a continuation lower is likely in the coming hours. Regarding the next levels of interest, the selling pressure should send prices to as low as 1.3000 psychological support while a recovery towards 1.3155/1.3172 zone is likely to cap any rally attempt.
To conclude, as far as 1.3225 peak is intact in the hourly chart, the trend should stay bearish.
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