Growing fears about inevitability of snap parliamentary elections in Germany led to appreciation of the Dollar against basket of currencies, including the yellow metal. In result of this downfall, the exchange rate reached and made a rebound from the bottom edge of a senior ascending channel.
In line with expectations, the currency exchange rate has successfully reached the 112.62 mark. But as this level was protected by the weekly PP, the pair was forced to retreat.
From technical perspective, the cable was expected to make a rebound from an intersection of two senior channels.
The common European currency continued to lose value against the Dollar in a junior descending channel, as expected.
The Kiwi has shown solid recovery against the Greenback since mid-Friday.
Following the US/Canadian data releases mid-Friday, bears took the upper hand and pushed USD/CAD out of the strongly overbought territory.
As apparent on the chart, the Australian Dollar continues to trade in line with the junior channel down.
The European market was shaken early on Monday, as news about the failure of the German Chancellor Angela Merkel to form a coalition caused a massive selling spree for Euro bears.
Despite release of better than expected American housing data the bullish pressure prevailed.
Contrary to trade patterns theory, the currency rate did not make a breakout from the falling wedge formation to the north.
On Friday, after reaching the 1.3250 mark the cable made a sharp turnaround and slipped back to the 1.3180 level.
As the currency pair did not have any fundamental background that could justify a rapid move, it finished the week near the 55-hour SMA.
The New Zealand Dollar was holding its positions steady on Thursday, as it was fluctuating with narrow range around the 0.6850 mark.
During the past 24 hours, the US Dollar has been dashing through various support/resistance levels, testing their boundaries for several hours but nevertheless failing to show any distinctive direction.
The Australian Dollar was guided entirely by the 55-hour SMA on Thursday.
The common European currency remained stranded between the monthly PP and the weekly R1 in the 132.81/133.34 area during the last trading session.
Until beginning of new trading session, a combination of the 55-, 100- and 200-hour SMAs in conjunction with the monthly PP managed to constrain the pair from breaking to the top.
As it was expected, the currency exchange rate made a rebound from combined resistance formed by the monthly PP and the falling 55- and 100-hour SMAs.
A release of better than expected information on the British retail sales supported active appreciation of the Pound and provided an impulse strong enough to break through the 1.3228 resistance level and reach an intersection of upper boundaries of a dominant descending and junior ascending channels.
In line with expectations, the currency exchange rate failed to slip below combined support formed by the 38.2% Fibonacci retracement level and the weekly R2 as well as to climb above combined resistance set up by the 50% retracement level and the monthly R1.
The combined resistance of the 200– and 100-hour SMAs and the bottom channel line circa 0.6920 proved to be an unbreakable barrier for the New Zealand Dollar.
As expected, the Greenback managed to push until the upper channel boundary during the last 24 hours.
Following the massive plunge early on Wednesday, the Aussie has shown little incentive to move away from the 0.7590 territory.
EUR/JPY was driven by significant downside risks on Wednesday, thus resulting in a fall of 86 pips during the session.