Amid the lack of major economic data following the holidays; the dollar was seen under slight downside pressure, markets where trading within tight ranges today.
The common currency bottomed at 1.3030 support level, and currently attempting to regain the bullish momentum towards the previously breached main ascending trend line. Resistance is seen around 1.3150 which is a horizontal resistance alongside the breached trend line. Being careful at this short term juncture is advised; as it may be a resumption point for the current bearish wave, on the other hand a breach above 1.3150-1.3060 may signal we are still trading within a ranging market among 1.3500-1.3000 barriers. Above 1.3160; 1.3270 is the next obvious pivot.
GBP/USD found strong support at the 50-days SMA around 1.5820; where price is currently trying to rebound again. In general, the overall upside biased ranging stance remains intact, where upside attempts shall be faced by 1.5925 followed by 1.6000. While the 50-days Simple moving average is the main barrier towards further decline.
The downside pressure remains dominant on USD/JPY, the pair has been trading within this short term descending channel; where price is currently attempting to test the descending support of the channel, a dip below could push price to test the 50-days SMA and 80.50 major support level. Where we anticipate an upside rebound from this area among 80.50-80.00 for a retest of the opposite side of the channel and 81.80 support.
Gold completed a retest of the major long term ascending trend line that carried the whole bullish trend since 2008. However; price rebounded and now attempting to breach the descending resistance of a short term possible bullish falling wedge pattern. A breach above the wedge at 1660.00 could be the start of a major upside move that has initial targets around 1718.00 resistance level. To the downside and due to the importance of the support area; only steady weekly trading below 1615.00 could lead initially to 1530.00