GOLD: The commodity continues to maintain its downside pressure as it weakened further the past week. However, a rejection candle print on Friday seen on the daily chart may present a platform to launch a recovery. On the downside, support comes in at the 1,098.00 level where a break will aim at the 1,090.00 level. A cut through here will open the door for move lower towards the 1,080.00 level. Below here if seen could trigger further downside pressure towards the 1,069.46 level. Its weekly RSI is bearish and pointing lower supporting this view. On the upside, resistance resides at the 1,120.00 level where a break will aim at the 1,135.000 followed by the 1,150.00 level. A violation of here will turn attention to the 1,170.00 level. All in all, GOLD remains biased to the downside in the medium term.
USDJPY: The pair took back some of its previous week losses at the end of the week leaving risk to the upside. However, with price failure seen ahead of its key overhead resistance zone at 121.73/63 zone, we may see USDJPY weaken in the new week. On the upside, resistance resides at the 121.00 level with a turn above here aiming at the 121.50 level. A break will target the 122.00 level. Further out, resistance comes in at the 122.50 level where a violation will aim at the 123.00 level. On the downside, support comes in at the 120.00 level where a break will target the 119.50 level. Below here if seen will aim at the 119.00 level followed by the 118.50 level. On the whole, USDJPY remains exposed to the upside but with caution
GBPUSD: Key Support At 1.5450/07 Zone Turns Price Lower
GBPUSD: With GBP turning lower at its key resistance zone at 1.5450/7 today, there is risk of more weakness as long as that zone continues to hold. This development is coming on the back of our earlier warning of how significant that level will be. Also, note that we have to see a close below the mentioned overhead resistance to give us more confidence of further weakness. On the downside, support lies at the 1.5350 level where a break if seen will aim at the 1.5300 level. A break of here will turn attention to the 1.5250 level. Further down, support lies at the 1.5200 level. Conversely, resistance stands at the 1.5500 level with a turn above here allowing more strength to build up towards the 1.5550 level. Further out, resistance resides at the 1.5600 level followed by the 1.5650 level. On the whole, GBP faces the risk of loss of upside momentum below its key resistance zone at 1.5450/7.
USDCAD: USDCAD continues to remain in a consolidation mode having been trapped in a range below its key resistance zone at 1.3352. A break either way must occur to trigger directional moves. Resistance resides at the 1.3300 level where a break will target the 1.3350 level. Further out, resistance comes in at the 1.3400 level where a turn lower may occur. But if further recovery is triggered resistance comes in at the 1.3450 level. On the downside, support lies at the 1.3200 level followed by the 1.3150 level. Further down, support resides at the 1.3100 level and then the 1.3050 level. All in all, USDCAD remains biased to the upside with eyes on its key resistance at 1.3352 level.
GBPJPY: Weakens, Further Corrective Pullback Envisaged
GBPJPY: With the cross weakening following its failed intra attempts on the upside, we see further weakness in the days ahead. This view remains valid while the 187.31/47 zone remains as resistance. On the downside, support comes in at the 183.50 level where a violation will aim at the 182.50 level. A break below here will target the 182.00 level followed by the 181.00 level. Its daily RSI is bearish and pointing lower suggesting further weakness. Conversely, on the upside, resistance resides at 185.00 level with breach targeting further strength towards the 186.00 level. A cut through here will set the stage for a move further higher towards the 187.00 level where a break will aim at the 188.00 level. A turn above here will aim at the 189.00 level. All in all, the cross faces downside threats below its key resistance zone
GBPUSD: Takes Back Corrective Losses, Breaks 1.5450
GBPUSD: With GBPUSD breaking above the 1.5450/07 zone during Wednesday trading session, further bullish offensive is likely. However, it must hold above its resistance turned support zone on a weekly closing basis to prevent a return to the downside. On the upside, resistance resides at the 1.5550 level with a break aiming at the 1.5600 level. A violation of here will turn attention to the 1.5650 level and possibly higher towards the 1.5700 level. Its daily RSI is bullish and pointing higher suggesting further strength. On the other hand, support lies at the 1.5400 level where a break if seen will aim at the 1.5350 level. A break of here will turn attention to the 1.5300 level. Further down, support lies at the 1.5250 level. On the whole, GBP remains biased to the upside on recovery.
EURUSD: Recovery Tone Intact, Targets The 1.1372 Level
EURUSD: Having EUR halted its two-day corrective weakness to close higher on a rejection candle on Wednesday, further strength cannot be ruled out. On the upside, resistance comes in at 1.1350 level with a cut through here opening the door for more upside pressure towards the 1.1409 level. Further up, resistance is seen at the 1.1450 level where a break will expose the 1.1500 level. On the other hand, Initial support stands at the 1.1250 level where a break will create scope for more weakness towards the 1.1200 level. A break of here will aim at the 1.1150 level with a turn below that level targeting the 1.1100 level. All in all, the pair looks to follow through higher on the back of its Wednesday recovery strength.
USDJPY: With the pair remaining on recovery path, we look for more upside pressure to occur in the days ahead. This leaves the 121.32 level, its Sept 10 2015 high as the next upside target. A cut through here will set the stage more strength towards the 121.73 level, its Aug 28’2015 high. On further upside, resistance resides at the 122.00 level with a turn above here aiming at the 122.50 level. A break will target the 123.00 level. Its daily RSI is bullish and pointing higher suggesting further strength. On the downside, support comes in at the 120.50 level where a break will target the 120.00 level. Below here if seen will aim at the 119.50 level followed by the 119.00 level. On the whole, USDJPY remains exposed to the upside nearer term for more recovery.
AUDUSD Prone To Downside Pressure On Price Failure
AUDUSD: AUDUSD took back all of its intra day gains to close lower on Thursday leaving risk of further move lower on the cards. With the formation of a pin bar, it faces the possibility of bear threats while holding below the 0.7275 level. On the upside, the 0.7214/33 zone comes in as the upside target. Above here will turn focus to the 0.7280 levels with a break targeting the 0.7233 level and subsequently the 0.7350 level. A violation of here will set the stage for a retarget of the 0.7400 level. Its daily RSI is bullish and pointing higher suggesting further strength. Conversely, support comes in at the 0.7150 level. Below that level will set the stage for a run at the 0.7100 level with a cut through here targeting further downside towards the 0.7050 level. Further down, its big psychological level at 0.7000 is seen as the next downside objective. On the whole, AUDUSD has capped its recovery and looks to move lower.
USDCHF: With USDCHF reversing almost all of its past week losses to close marginally lower on Friday, risk of further move higher is likely. On the upside, resistance lies at the 0.9762 level with a breach targeting the 0.9800 level. A breather may occur here and turn the pair lower. But if taken out, expect a push further higher towards the 0.9850 level. Its weekly RSI is bullish and pointing higher suggesting further strength. On the downside, support comes in at the 0.9600 level. A turn below here will open the door for more weakness to occur towards the 0.9550 level and then the 0.9500 level. A cut through here will open the door for additional decline towards the 0.9450 level. All in all, the pair remains biased to the upside in the short term.
GBPJPY Pauses Recovery, Vulnerable To The Downside
GBPJPY: The cross closed almost flat the past week (see weekly chart) after failing to follow through higher on the back of its previous week gains.Additionally, it printed a rejection candle on Thursday and followed through lower on Friday. This price action development leaves GBPJPY vulnerable to the downside as long as its trades and holds below the 188.25 level. On the downside, support comes in at the 185.00 level where a violation will aim at the 184.00 level. A break below here will target the 183.00 level followed by the 182.00 level. Conversely, resistance is seen at the 187.00 level followed by the 188.00 level. A cut through will set the stage for a move further higher towards the 189.00 level where a break will aim at the 190.00 level. A cut through here will aim at the 191.00 level. All in all, the cross remains biased to the downside on price failure.
EURUSD: Caps Recovery, Risk Turns Lower On Price Failure
EURUSD: Having EUR closed lower on price failure at 1.1459 level to print a rejection candle the past week, further weakness is envisaged in the new week. As long as the mentioned overhead resistance holds as resistance, our bias continues to point lower. Support lies at the 1.1200 level where a violation will aim at the 1.1150 level. A break of here will aim at the 1.1100 level with a turn below that level targeting the 1.1050 level. Its weekly RSI is bearish and pointing lower suggesting further downside pressure. Conversely, resistance is seen at 1.1350 level with a cut through here opening the door for more upside towards the 1.1409 level. Further up, resistance lies at the 1.1450 level where a break will expose the 1.1500 level. All in all, EUR remains biased to the downside in the short term.
GOLD: Key Resistance At 1147.87 Looks To Cap Strength
GOLD: The commodity triggered a recovery the past week to close higher suggesting further upside. However, we may see a move lower while the 1147.87 level continues to hold as resistance. On the downside, support comes in at the 1127.00 level where a break will aim at the 1115.00 level. A cut through here will open the door for move lower towards the 1100.00 level. Below here if seen could trigger further downside pressure towards the 1090.46 level. Conversely, resistance resides at the 1150.00 level where a break will aim at the 1165.000 followed by the 1175.00 level. A violation of here will turn attention to the 1185.00 level. All in all, GOLD remains biased to the upside in the medium term.
EURJPY Looks To Follow Through Lower On Bear Pressure
EURJPY: With the cross selling off on Friday to close the week lower, we envisage a follow-through lower in the days ahead. Support comes in at the 135.00 level where a break will aim at the 134.50 level. A turn below here will target the 134.00 level with a breach turning focus to the 133.00 level. Its weekly RSI is bearish and pointing lower suggesting further weakness. Conversely, resistance lies at the 136.00 level. Further out, resistance comes in at the 137.00 level where a break if seen will threaten further upside towards the 137.50. Further out, resistance resides at the 138.00 level. All in all, the cross now faces downside pressure on price failure.
EURGBP: Follows Through Lower, Risk Builds On 0.7170 Level
EURGBP- With the cross closing lower the past week and following through lower during Monday trading session, further downside pressure in the days ahead. On the upside, resistance lies at the 0.7300 level where a violation if seen will turn risk towards the 0.7350 level. On further upside, the 0.7400 level comes in as the next upside target followed by the 0.7450 level. Its daily RSI is bearish and pointing lower suggesting further weakness. Conversely, support lies at the 0.7200 level where a violation will turn focus to the 0.7150 level. A break will turn focus to the 0.7100 level. Further down, support comes in at the 0.7050 level. All in all, the cross remains biased to the downside in the medium term.
AUDUSD: A follow-through lower on the back of two rejection candle formations on Monday has cleared the way for more weakness in the days ahead. On the upside, resistance lies at the 0.7150 level. A cut through here will turn attention to the 0.7200 level and then the 0.7250 level where a violation will set the stage for a retarget of the 0.7200 level. On the downside, support resides at the 0.7100 level where a breach will aim at the 0.7050 level. Below that level will set the stage for a run at the 0.7000 level with a cut through here targeting further downside towards the 0.6950 level. Its daily RSI is bearish and pointing lower supporting this view. On the whole, AUDUSD continues to retain its long term downside pressure.
USDCHF: On The Upbeat, Pressure Builds Up On The 0.9823 Level
USDCHF: The pair remains on the offensive and looks to recapture its key resistance located at the 0.9823 level. On the upside, resistance lies at the 0.9900 level with a breach targeting the 0.9950 level. A breather may occur here and turn the pair lower. But if taken out, expect a push further higher towards the 1.0000 level. Its daily RSI is bullish and pointing higher suggesting further strength. On the downside, support comes in at the 0.9700 level. A turn below here will open the door for more weakness to occur towards the 0.9650 level and then the 0.9600 level. A cut through here will open the door for additional decline towards the 0.9550 level. All in all, the pair remains biased to the upside in the short term.
EURUSD: Price Hesitation Sets In Ahead Of 1.1086 Level
EURUSD: With EUR now seen recovering ahead of its key support at the 1.1086 level, some kind of a correction could occur. But as long as that move is capped by the 1.1259/58 zone, its short term weakness triggered from the 1.1459 level remains intact. Support lies at the 1.1100 level where a violation will aim at the 1.1050 level. A break of here will aim at the 1.1000 level with a turn below that level targeting the 1.0950 level. Its daily RSI is bearish and pointing lower suggesting further weakness. Conversely, resistance is seen at 1.1200 level with a cut through here opening the door for more upside towards the 1.1250 level. Further up, resistance lies at the 1.1300 level where a break will expose the 1.1350 level. All in all, EUR remains biased to the downside in the short term.
USDCAD Rejects Higher Prices, Prints Negative Candle
USDCAD: With USDCAD turning off its intra day high at 1.3416 level to close lower on Thursday, further downside pressure is likely. While the 1.3416 level caps, our view on the pair remains lower. Resistance resides at the 1.3400 level where a break will target the 1.3450 level. Further out, resistance comes in at the 1.3500 level where a turn lower may occur. But if further recovery is triggered resistance comes in at the 1.3550 level. On the downside, support lies at the 1.3300 level followed by the 1.3250 level. Further down, support resides at the 1.3200 level and then the 1.3150 level. All in all, USDCAD remains biased to the upside medium term but could face downside pressure after price failure.
GBPJPY: With the cross following through higher on the back of its Thursday long-tailed rejection candle formation, further bullish price build up is envisaged. This leaves risk of more recovery towards the 184.09 where a break will open the door for strength towards the 185.00 level. A violation will aim at the 186.00 level with a break below here target the 187.00 level followed by the 188.00 level. Its daily RSI is bullish and pointing higher suggesting further strength. Conversely, support is seen at the 183.00 level followed by the 182.00 level. A cut through will set the stage for a move further higher towards the 181.00 level where a break will aim at the 180.00 level. A cut through here will aim at the 179.00 level. All in all, the cross’s bias remains to the upside on correction nearer term
