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GBP steady ahead of BoE rate decision / AUD under pressure as unemployment figures looms

Article by ForexTime

EUR/USD

The Euro remain steady in the near-term as prices continue to hold above 1.1200 psychological support.

The single currency jumped today and did an attempt to overtake 1.1265 hourly resistance but we can clearly see that prices still need additional bullish momentum to create a sustainable breakout.

The 1.1200 handle is considered as the short-term support for the pair, and as far as this level holds, the Euro should remain steady in the coming days. In the opposite, a daily close below it, should trigger another sell-off and will put the single currency under pressure again.

In the other side, a break above 1.1265 resistance is needed to confirm another rally in the direction of 1.1325/50 zone.

To summarize, the Euro should continue to trade sideways to higher in the following hours until we see a clear break above the mentioned above resistance level.

Support: 1.1200-1.1150-1.1122

Resistance: 1.1265-1.1325-1.1350

GBP/USD

The Sterling fell during the open of the U.S trading session and has reached a major support zone located around 1.3152/27 levels.

This zone represents the 50% retracement of the entire recovery seen from 1.2865 low to 1.3445 peak, in the meantime, it coincides with the former broken bearish trend line that comes from 1.3530 high.

Therefore, the British pound should begin a new wave to the upside ahead of Bank of England rate decision tomorrow and we can see prices reaching as high as 1.3255/70 zone before to find new sellers again.

In the flipside, a drop towards 1.3200/10 may offer fresh buying opportunities for bulls.

Support: 1.32000-1.3166-1.3137

Resistance: 1.3255-1.3270-1.3290

USD/JPY

The pair turned lower in the hourly chart as prices failed to overtake 103.35 resistance.

Therefore, another extension lower in the direction of 101.35 support level is likely as far as 102.95 peak is in place.

Looking at the daily chart, the pair found strong resistance near the 61.8% retracement of the entire decline that began from 107.50 peak, which stands at 104.45 level and therefore, a downside continuation is possible in the coming days.

As of now, the bullish momentum seen recently has faded and a daily close below 101.35/20 support zone would be ideal for another sell-off that can reach 100.50 major support.

In the flipside, only a breakout above 103.35 peak will weaken this negative scenario.

Support: 101.35-101.20-100.50

Resistance: 102.95-103.35-103.70

USD/CAD

The pair soared recently as commodity currencies entered into a bear market in the short-term. In addition, the sell-off in Oil continue to support the pair and as of now, the focus should be on 1.3250 resistance in the coming days.

Therefore, the downside potential in USD/CAD is likely to remain limited and as far as 1.3025 low is in place, new high can be seen very soon.

However, a downside correction remains possible and should find strong buyers above 1.3120 level as it represents the hourly support.

Support: 1.3136-1.3120-1.3025

Resistance: 1.3200-1.3250-1.3370

AUD/USD

The Australian Dollar ended last week on a negative note as prices have showed a strong shooting star reversal candle in the weekly chart.

Therefore, a continuation to the downside was highly anticipated as per our previous reports. Effectively, the Aussie dropped sharply after breaking below 0.7495 daily support, which may now act as a strong resistance in the near-term ahead of Australian employment change figures, which will be released overnight.

In the other side, only a daily close above 0.7567 peak will unwind the selling pressure and another jump in the direction of 0.7725 weekly resistance can happen.

In extension, a worse than expected figures may fuel the next wave lower and we can see the pair falling to as low as 0.7420 in the coming hours.

Support: 0.7440-0.7420-0.7367

Resistance: 0.7495-0.7535-0.7567

Dollar index

Looking at the U.S Dollar recent price action, the Greenback keep fighting for a clear direction as speculation about the date of the future U.S rate hike intensified.

Technically, prices remain under pressure in the hourly chart, as the index continue to print lower highs from 97.60 peak.

Recently, we have seen strong sellers at the 61.8% Fibonacci retracement of the drop that began from 96.23 peak. Consequently, a move lower towards 94.45 support remain possible for the week ahead.

In the flipside, 96.25-96.50 levels are considered as a strong resistance zone for the near-term price action and the upside potential remain limited below these barriers. From a wider angle, the Dollar keep trading sideways in the weekly chart, as investors remain skeptical about the FED monetary policy. Consequently, volatility can persist in the near-term unless we see a clear break above 96.50 peak or below 94.00 daily support.

Support: 94.80-94.45-94.00

Resistance: 95.60-96.25-96.50

 

 

Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.


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About Louie Lewis

Louie Lewis
Successful forex trading starts with you first. Then comes the actual strategies and techniques. I have been involved with forex and forex trading for a few years now. It is a wonderful way to build wealth. The learning never stops and I want to help others along their journey into this wonderful market of opportunity.

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