Price has lost momentum in the recent two trading days. Key support is seen at 1.1490, and at the rising trendline from the June low. A break below 1.1490 would suggest a larger correction towards 1.14 could follow.
However, the overall technical outlook remains positive, and EUR/USD is likely to catch a bid again on a larger retracement.
Cable is consolidating around the 1.30 support level. The Stochastic indicator is suggesting that the pair is somewhat oversold in the short-term. However, resistance above 1.31 has proven to be tough, and GBP/USD will have difficulties clearing that area of resistance.
A break below 1.30 will likely trigger further momentum selling and push the pair towards 1.2913 support. There, it should find solid support.
The charts are suggesting USD/JPY could have a bounce soon. It tested the 200 DMA and 50 % Fibonacci support (June rally) twice, and managed to recover from there. A break above 112.35 resistance would confirm the low there, and signal a rally towards 113.20 resistance.
Further, the Stochastic indicator shows that the pair is oversold in the near-term.
The Aussie had a strong rally in the recent days, and almost reached 0.80 today. It is likely to breach that resistance level soon, but the Stochastic is suggesting the pair is heavily overbought in the near-term. A retracement is likely, and would be healthy for a sustainable trend as well. Initial support is seen at 0.7890, followed by strong support at the former key resistance level near 0.7830 (also 38.2 % Fibonacci of the recent rally).
Overall, buying dips is still the favoured strategy in AUD/USD.
Negative Stochastic divergence and overbought conditions suggest that a retracement could follow in NZD/USD as well. Key support is seen at 0.7260, from where the pair could bounce in the near-term.
Resistance is heavy above 0.7380, and the New Zealand Dollar seems to lack the momentum to have a clear breakout above 0.74.
The loonie is looking heavily oversold on the Daily & Weekly chart, but the trend is strong and the bottom doesn't seem to be near.
The next major support level lies at 1.2460, and it is possible that USD/CAD will test that level before any larger recovery occurs. To the topside, resistance is noted at 1.2770 and 1.2820.
Gold broke below short-term trendline support and could test the $1230/1232 support area soon. Support needs to hold for Gold to sustain the positive momentum.
A break below would confirm the false breakout and signal another retracement towards $1220. Should Gold be able to bounce from there, a rally towards $1250 is likely to follow.
Oil is currently testing a major resistance level at $47.30. The commodity is overbought in the short-term, but a clear breakout would pave the way for a rally towards $50.
Keep an eye on the falling trendline from the March high, as strong resistance can be expected there.
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