Technical Outlook for the week ahead 05-09 to 09-09-2016
Technical Outlook for the week ahead 05-09 to 09-09-2016
USD/CAD
The pair is trading inside a big range that stands between 1.2760 support and 1.3250 resistance.
Therefore, traders should be careful in this kind of situations. Regarding the near-term technical outlook, the pair is likely to decline further following last Friday negative signal.
Prices have showed a bearish engulfing candle after a big rally seen in the previous days, which can be a top signal in the short-term.
For the week ahead, another acceleration towards 1.2955-1.2910 support zone is highly expected before to see new buyers in the pair.
While in the hourly chart, prices should remain under pressure below 1.3040 resistance.
Technical Outlook for the week ahead 05-09 to 09-09-2016
Technical Outlook for the week ahead 05-09 to 09-09-2016
AUD/USD
The Australian dollar remain very strong in 2016 compared to a basket of major currencies.
From a technical standpoint, the pair may challenge 0.7615 resistance level in the week ahead as the bullish momentum remain in place.
This barrier represents 61.8% of the last drop seen from 0.7690 peak and a daily close above it, will trigger a big rally in the Aussie.
In the other side, prices should continue to trade sideways to higher as far as 0.7490 low is in place which keeps the downside potential limited in the Aussie.
To summarize, the daily trend is clearly bullish in this pair while the hourly trend has turned from bearish to neutral and we will wait for a break above 0.7615 resistance to confirm that the positive outlook has strengthened again.
Technical Outlook for the week ahead 12-09 to 16-09-2016
Technical Outlook for the week ahead 12-09 to 16-09-2016
EUR/USD
The Euro continue to trade sideways in the near-term, after the last ECB meeting showed that the central bank is likely to maintain the current asset purchase program unchanged until March 2017.
The single currency reached a high of 1.1325 during last week before to retreat towards 1.1200 psychological support, which represents the 61.8% retracement of the recent recovery that began from 1.1122 low.
This level 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 extension a break above 1.1285 resistance is needed to confirm another rally in the direction of 1.1325/50 zone.
To summarize, the Euro remain one of the strongest currencies in the near-term and traders should wait for the break of the mentioned above levels, to get more clues about the future price action in the pair.
Technical Outlook for the week ahead 12-09 to 16-09-2016
Technical Outlook for the week ahead 12-09 to 16-09-2016
GBP/USD
The Sterling failed to overtake 1.3450 daily resistance last week as bullish momentum decreased on Friday.
Looking at the technical picture, the pair fell after breaking below 1.3290 hourly support and managed to retrace 50% of the entire rally seen from 1.3060 low.
This level stands at 1.3250 and should continue to give strong support to prices in the coming days. In the daily chart, the pair is trying to confirm a major bullish reversal as prices succeeded to overtake the bearish trend line that comes from 1.3530 peak. In addition, the British pound continue to print higher lows from 1.2798 yearly low, which keeps the short-term outlook positive.
As of now, the pair should keep trading higher in the direction of 1.3375 resistance as far as prices remain above 1.3232 low.
Technical Outlook for the week ahead 12-09 to 16-09-2016
Technical Outlook for the week ahead 12-09 to 16-09-2016
USD/JPY
The pair turned lower in the hourly chart as prices succeeded to break below 101.96 support.
Therefore, another extension lower in the direction of 101.20 level is likely as far as 102.65 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 101.20 support would be ideal for another sell-off that can reach 100.50 major support.
In the flipside, only a breakout above 102.65 peak will weaken this negative scenario.
Technical Outlook for the week ahead 12-09 to 16-09-2016
Technical Outlook for the week ahead 12-09 to 16-09-2016
USD/CAD
The pair is trading inside a big range that stands between 1.2760 support and 1.3250 resistance.
Therefore, traders should be careful in this kind of situations. Regarding the near-term technical outlook, the pair is likely to extend its rally in the direction of 1.3155 weekly resistance.
However, a downside correction remains possible during the beginning of this week and can reach 1.3007-1.2995 support zone before to see strong buyers again for another wave higher.
Technical Outlook for the week ahead 12-09 to 16-09-2016
Technical Outlook for the week ahead 12-09 to 16-09-2016
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.
From a technical standpoint, the pair may challenge 0.7575-0.7595 resistance zone in the coming days before the decline resume. Therefore, we expect sellers to appear from the mentioned above zone for another re-test of 0.7490 major support.
In the other side, only a daily close above 0.7657 peak will unwind the selling pressure and another jump in the direction of 0.7725 weekly resistance will be very likely.
To summarize, the daily trend is clearly bullish in this pair while the hourly trend has turned bearish, meanwhile, a clear breakdown below 0.7490 support should trigger a big drop in the pair.
Technical Outlook for the week ahead 12-09 to 16-09-2016
Technical Outlook for the week ahead 12-09 to 16-09-2016
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.
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.
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.
