Being unable to prove its bullishness and advance beyond 94.47/24, the currency pair is being sold off.
USD/CHF is slowly but surely approaching a local high at 0.9566, which has recently triggered a bearish correction that lasted until 0.9350 was reached.
Despite presently observed dearth of liquidity, the U.S. Dollar is outpacing its Canadian counterpart.
Even thought there is not much bullish action right now, all of the relevant technical indicators in aggregate are giving ‘buy' signals, suggesting that the price is targeting 0.8476 that in turn has proven to be impenetrable in December of the last year and the first two months of 2013.
The currency pair has approached a confluence of supports, consisting of the 100 and 200-day SMA, apart from the monthly R1, telling us that extension of the dip is viewed as a less likely scenario than resumption of the rally started in the very beginning of March.
Due to current tranquillity in the market we should not expect the pair to breach any of the major levels or rewrite highs or lows in the nearest future.
As suspected, the currency pair was unable to hurriedly penetrate 0.9553/49, but instead returned down to 0.9488/68, gaining a foothold above the up-trend support line.
According to the technical indicators, we may expect a little more bearishness in the price before bulls fully recover from the recent downward correction and drive the exchange rate upwards in a longer time perspective, as suggested by weekly and monthly studies.
A support level at 1.5092/85 initiated a recovery yesterday that has postponed development of a dip.
Support at 1.2765/60 holds for now, but in the end is expected to give in to the bears, exposing 1.27, the current location of the Bollinger band and weekly S2, since the outlook on the pair is from neutral to negative.
The currency pair has been experiencing volatile trading sessions lately, rising up to 0.8408/05 and then falling back to the initial level at 0.8337/33.
While support at 1.0187/84 was crossed fairly easily, 1.0152/48 turned out to be of much greater importance to market participants, many of whom went long at the 55-day SMA and thus negated strong bearish impetus.
AUD/USD is adding to losses, breaching 1.0417 and then shortly challenging support area at 1.0404/1.0387, which is formed by the 100 and 200-day SMAs and the monthly R1.
Bearish sentiments of EUR/JPY are currently struggling with the interim support line at 120.12/09 that does not wish to open the door towards the 100-day SMA at 118.95 as it did a month ago.
An upside risk noted yesterday has proven to be well-justified, since we have witnessed a sharp rally from 0.9470/68 that did not respect an accelerated up-trend resistance line, piercing it effortlessly.
Violation of the rising support line has not yet introduced substantial changes into the price action, as USD/JPY remains largely flat, contained by 93.59, the 55-day SMA, from below and by 95, the up-trend resistance, from above.
The Cable carries on moving away from the formidable resistance area at 1.5221/1.5177, as selling pressure there disables bulls and thus prevents rallies.
After overcoming a short period of hesitation near 1.2815 the pair continued the decline and encountered 1.2774/65, which appears to be a stronger support line than the previous one.
A rebound from 0.8338/33 did not last for long, as NZD/USD has sharply dropped after a contact with 0.8393, the upper Bollinger band.
Yesterday USD/CAD subsequently broke through 1.0213, the former up-trend support line, and 1.0187/84, the monthly PP and weekly S1, signalling that if the recovery is to recommence, the bulls will require more time to remedy the situation and return the outlook back to positive.
Before AUD/USD could touch upon 1.0518, short-selling has settled in and pulled the price back down to 1.0417, revealing fragility of the current upward trend, as absence of serious resistances implies that later on the pair will find strong supports to uphold it to be missing.
A shallow bullish correction from 120.27/09, which followed penetration of a support line at 121.78, is now completely pared, as it seems that the pair is willing to lose even more ground in the near future, according to the daily technical indicators.
The situation here is somewhat reminiscent of what is happening with USD/JPY since February.
A recent fall of the currency pair, following a breach of an important bullish trend-line, did not extend yesterday, but was reversed by an interim support line at 93.98, calling into question whether bears will be able to take control of the price's direction in the longer term.