EUR/USD
The Euro remain one of the weakest currency in the FX Market.
On Friday, the single currency managed to recover some of early last week losses, boosted by a disappointing jobs figures from the U.S.
However, the pair turned sharply lower after reaching a key fibonacci retracement, which stands at 1.1255. When looking at the candlesticks structure in the daily chart, we can see a strong bearish engulfing reversal candle which happened on Friday, consequently, another extension to the downside is likely to resume in the week ahead and prices may fall towards the next daily support, located at 1.1085 level.
In the opposite, only a daily close above 1.1257 peak will cancel this negative view.
Support: 1.1150-1.1110-1.1085
Resistance: 1.1250-1.1280-1.1340
GBP/USD
The Sterling rallied strongly after breaking above 1.3300 psychological barrier and managed to extend its gains to as high as 1.3350 level before to end the week few pips below 1.3300 handle, more specifically at 1.3291 level.
Looking at the technical picture, the pair showed a clear increase in the bullish momentum and by now a potential bullish reversal is in place. Meanwhile, we still need a daily close above 1.3370 weekly resistance to confirm this positive scenario.
This barrier represents the last chance for bears and therefore, we can see a downside retracement in the beginning of the week, that can reach around 1.3240 level before the short-term bullish trend resume.
As of now, the pair should keep trading higher in the direction of 1.3370/1.3430 resistance zone as far as prices remain above 1.3127low, while in the short-term the focus will be on 1.3350/70 barriers.
Support: 1.3255-1.3240-1.3127
Resistance: 1.3350-1.3370-1.3430
USD/JPY
The pair continue to rally as the bearish momentum faded.
Bulls managed to preserve the 100.00 psychological support and pushed prices above 102.80 barrier, which cleared the path for a big rally in the pair.
Looking at the daily chart, the pair is trading near the 61.8% retracement of the entire decline that began from 107.50 peak, which stands at 104.60 level and therefore, a downside correction cannot be ruled out in the coming days.
As of now, the bullish momentum may slowdown as the pair is about to test a major resistance level located at 104 60.
In extension, a close above this barrier can open the way to as high as 105.65 level, while a dip below 102.80 should weaken this near-term bullish trend.
Support: 103.55-102.80-101.85
Resistance: 104.60-105.65-106.60
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.
Support: 1.2955-1.2910-1.2860
Resistance: 1.3040-1.3115-1.3150
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.
Support: 0.7536-0.7503-0.7490
Resistance: 0.7615-0.7690-0.7720