Sideways movement dominated the scene today; where the majors where trading among important technical support and resistance levels. Starting from the EUR/USD; we have seen a test of 1.3290-1.3270 support area yesterday before it rebounded again to trade within this tight range.
Price is currently attempting to breach the descending support of the rising wedge pattern, and that could be negative in terms of the near term outlook for the pair; however due to the current ranging stance we prefer to see a breach and four-hour closing below the aforementioned region of horizontal support levels at 1.3270 to change our view into short term bearish, eying a test of the 50-days SMA around 1.3200 followed by 1.3140. To the upside a breakout of the range and above 1.3380 could clear the way to another test of Februarys high at 1.3485.
GBP/USD fell sharply within the past few hours, trading back below 1.6000 mark, we mentioned previously that fluctuations are anticipated around this psychological resistance, where the rising wedge pattern continues to confine price movement, thus a bearish reversal could start if we witness a breach and steady trading below the ascending trend line of the wedge currently around 1.5930 area, eying 1.5770 support once more. To the upside another daily closing above 1.6000 could lead to 1.6150 next major resistance.
USD/JPY rebounded from 81.90 one more times, the pair failed to hold below the level to trade again higher, thus the current range bound among 83.20-81.90 continues to be effective, where we may see another push to 83.20 resistance. Trading again for few hours below 81.80-81.75 will push the pair lower towards 80.60 major support.
Gold has been under downside pressure for a while, however it's attempting to maintain the short term bullish bias after breaching 1665.00 resistance, now an obvious descending resistance is seen around 1690.00-1700.00 level, thus if we see a clear breach and stability above 1700.00 a retest of 1720.00 will be probable. In general, the short term bearishness is protected by 1720.00 level, and thus a daily closing above it shall signal a probable resumption of the bullish trend. Main support levels to watch in the near term at 1655.00 and 1645.00