Pair seems to be consolidating after a sell off a few days ago and consecutive bounce from the 20-day SMA/weekly and monthly PP.
The nearby resistances, such as the monthly PP and weekly R1, withstood an initial test and forced USD/CHF to pull back for now.
Yesterday USD/JPY successfully closed above the resistance at 98.82/69, but at the moment it is retreating from a round level—99.00.
The Cable continues to trade sideways, even though the bullish support line failed to stay intact, meaning the possibility of a sell-off is increased.
Although at some point yesterday it seemed that the rising trend-line (in force since mid-May) may be breached, the support managed to weather the selling pressure and sent the currency pair towards the weekly PP at 1.3549.
Pair is continuing to appreciate after bouncing from the weekly PP/20-day SMA.
After the pairs failure at 1.042 last week it seems it is being capped by the 55 and 100-day SMAs in the upside and 1.034 in the downside.
"If things went wrong in the US, then at least in the short-term, we might see some strength against a weakening US dollar. But on the other hand, in what the market obviously considers as the more likely scenario that there will be a resolution, then the Aussie might benefit from a bit of risk-on movement."- CMC Markets (based on
Despite the pairs failure even prior to the weekly R1, it seems that bulls are not giving up and not allowing for the pair to trail lower.
Yesterday USD/CHF inched higher and thereby has finally surpassed the June low, although we were expecting a pullback down to 0.9021 prior to that.
Among all nearby resistances a combination of the monthly PP and 100-day SMA turned out to be the most formidable, successfully repelling several attacks of USD/JPY since Oct 11.
The most recent price action threatens intactness of the rising line that in turn safeguards the medium-term positive outlook.
EUR/USD refuses to start a rally and is continuously putting strong pressure on the support line at 1.3491.
Kiwi-greenback cross is continuing to appreciate and at the moment is aiming at the September high.
20-day SMA has stopped the pairs decline father it plummeted form the 1.042 and seems to be continuing to support it further.
As anticipated, pair advanced above the 95 cent mark and at the moment is probing September high at 0.953.
In the beginning of the week pair showed clear intentions to test and , potentially, breach weekly R1.
The exchange rate remains capped by the resistance at 0.9128, but at the same time refuses to descend beneath the support area created by the weekly pivot point and the 20-day SMA at 0.9082/74.
Judging by the technical indicators, USD/JPY is likely to continue having difficulties while dealing with the nearest resistances.
GBP/USD remains flat—between the weekly and monthly pivot points.
Yesterday the currency pair made an attempt to decouple from the rising trend-line, but turned around ahead of the resistance at 1.3613—the weekly R1.
Pair started the week with a bounce from 20-day SMA/weekly PP.
Weekly pivot at 1.042 caused a major sell off of the pair which channels further bearishness.
Pair has been capped by the 95 cent level for quite some time, but as we can see, it started the week with clear intention to advance above it.