EUR/USD
The Euro broke above 1.1585 resistance yesterday and extended gains to 1.1650. The pair is overbought in the short-term, but demand is likely to remain high on any dips and it should recover quickly.
Look for initial support at 1.1585, followed by stronger support at 1.1540. In the near-term, losses are likely to be limited to 1.1490/1.15. Following the clear breakout above 1.16, the next significant resistance level lies at 1.1714 (summer 2015 high).
GBP/USD
The break below 1.30 confirms the recent high at 1.3120. Cable is now approaching major support at 1.2930 and is near the rising trendline support from the late June low.
Should 1.2930 fail to hold, a larger retracement seems likely, with the next notable support level then lying at 1.2820.
USD/JPY
USD/JPY had another bounce off 111.50 support and the Stochastic is showing positive divergence near a key support level. This suggests that the pair could recover slightly in the near-term, although the broad Dollar weakness is likely to prevent a larger rally.
Keep an eye on resistance in the 112.40/50 area. A clear breakout would signal that a rally towards 113.50 could follow. To the downside, 111.50 support is now key. Should it fail to hold, USD/JPY is likely to test 110 soon.
AUD/USD
The Aussie Dollar failed at 0.80, but remains resilient. Initial support is seen around 0.79. AUD/USD has stronger support at 0.7840 should that level fail. A bounce off 0.7840 would confirm that the short-term uptrend remains intact and pave the way for a rally towards 0.80.
NZD/USD
NZD/USD broke above a significant area of resistance between 0.7380 and 0.7410. However, the Stochastic is showing heavily overbought conditions on the hourlies, as well as Daily & Weekly chart. Therefore, the New Zealand Dollar is unlikely to keep up the momentum it had so far.
Strong resistance is noted at 0.7490 and 0.75. However, NZD/USD will likely need a retracement before the uptrend continues. Key support is now seen at 0.7340/50.
USD/CAD
The Canadian Dollar continues to struggle. Trendline resistance on the hourlies have capped the topside so far, and heavy resistance is noted in the area between 1.2630 and 1.2660. CAD traders can expect to see a bounce around the 1.25 level, but a larger rally seems unlikely in the near-term.
XAU/USD
Gold is approaching an important area of resistance between $1250 and $1255. Should it be able to overcome that obstacle, a rally back towards $1300 seems likely.
A daily close above $1255 would be a strong confirmation of the short-term uptrend. The recent bounce off $1232 shows that momentum is solid, and Gold should continue to benefit from the USD weakness as well.
WTI
Oil briefly broke above $47.30 resistance, but failed to close the trading day above it. This shows that WTI still has not enough momentum to clear that major resistance level. A break back below $46.15 would signal a correction to $45.
To the topside, should WTI be able to close the day above $47.30, momentum is likely to increase and a rally towards the falling trendline resistance could follow.
