Red has been the color of the day so far, major high yielder's and the euro in addition to stock indices started the week under downside pressure, however at the moment, we have seen a kind of pause for a breath.
Retails sales among Europe showed a slight expansion in February to 0.3% from 0.5 contractions in January, which gave the euro dollar pair a soft upside, nudge from the major technical support around 1.3180.
This support around 1.3180 is considered a major short term level, where the ascending support for the recent bullish wave from 1.2600 bottom is locate, indeed the pair has jus t rebounded trading around 1.3225 while writing this report. To the upside major resistance level to watch at 1.3280, as steady trading above 1.3280 shall clear the way to 1.3350. On the other hand if we see sustained breach below 1.3180; 1.3110 will be the next obvious stop followed by 1.3000 major psychological level. The pair is currently trading in the positive territory after kicking off the session at 1.3190.
The GBP/USD was stopped at 1.5800 level, currently rebounding attempting to retest 1.5880 resistance level. We have seen a false breakout above 1.5925 high recently, where the pair fell to trade below the level after topping near 1.6000. Accordingly, we expect 1.5900 areas to halt further incline where we may see another attempt to 1.5800. Steady trading above 1.5900-1.5925 again shall extend gains for the pair, eyeing the latest high at 1.6000 again.
The USD/JPY is maintaining its short term bullish trend, however the pair is down around 60 pips so far, where it printed a low today at 81.15 after opening the session at 81.75. In general, we look at any downside correction as an opportunity to long the pair, anticipating further weakness for the Japanese yen in the upcoming period, supported by the fundamental change in the Japanese central bank approach to devaluate its currency. Technical speaking, 80.80, 80 and 79.50 are the main support levels in the near term, while to the upside penetrating 81.85 shall open the door to 82.25 and 84.00.
The recent sell-off on gold pushed the metal to test areas just above the 50 and 200-days Simple moving averages. Both are located among 1675.00-1680.00, thus we consider the area as an important juncture for the metal's prices in the near term , as a breach below this area could extend the downside pressure again towards the main and long term ascending trend line that started from 2008 bottom, around 1600.00. To the upside 1720.00 level should be taken with daily closing to look for the upside to gain momentum again otherwise we remain neutral on gold among 1720.00 and 1675.00. The commodity is currently down from opening price trading at 1704.00 after opening the session at 1711.00