For quite some time now pair has been opening the week with up to 100 pip dips and picking up again after that.
Pair started the week with mild appreciation, but today it dipped by more than 50 pips.
Pair started the week at 1.3360; although the formed candles are bearish trading volume and volatility are low not giving any clear directional impulse.
After a short contact with the bullish trend-line NZD/USD started to move away from it at an accelerate pace, acting in line with our previous assumption that the currency pair should for now remain within an ascending triangle it has been forming for the last 250 bars.
Indeed, a cluster of supports, mainly formed by the 55, 100 and 200-day SMAs proved to be formidable enough to end the bearish correction and boost activity of bulls that have sent the price already beyond 1.0008.
As expected, a zone constructed by the weekly pivot point and Bollinger band was unable to resist bears for long, allowing a dip down to 1.0248/43, which in turn initiated an anticipated covering of short positions.
EUR/JPY has made another step towards a key support area at 123.29/122.69, intactness of which ensures veracity of our idea that the Euro retains potential to maintain appreciation.
After being flat during this week, USD/CHF accumulated a bullish impetus and yesterday sharply rallied towards the 55-day SMA.
USD/JPY is stuck near the 93.60 level for a fourth consecutive trading session. The pair can not breach the monthly R1 level at 93.62 and the weekly R2 slightly higher.
Even though the Cable has gone through the major support line in the beginning of the week, its magnitude is too strong to let the price easily fall down.
The major currency pair slipped below the 20-day SMA yesterday, as the price finally pulled away from a flat zone at 1.3584/54.
The resistance area at 0.8499/62 has once again proved its topicality, sending the price through a number of support levels straight to the bullish trend-line.
"In all honesty (the Canadian dollar) is probably sidelined as everybody is watching the ECB and their attitude to the exchange rate and potential policy changes."- RBC Capital Markets (based on Reuters)Pair's OutlookUSD/CAD stays directionless, as a current strong supply of the U.S. currency keeps the spot price close to the confluence of all four traced simple moving averages. Given
Following a precipitous fall from a high of 1.0457, the currency pair has taken a pause just above 1.0312/04.
The resistance at 128.65/127.94 has forced the pair to step back after the initial test.
For the last five months USD/CHF has been clearly trading within the bearish channel.
A breach of the upper edge of the rising channel pattern we were following since Nov 1 only adds to bullishness of the pair, which is currently attempting to erode a combination of the weekly and monthly R1 at 93.70/52.
The fact that the Cable has closed below the major up-trend support line implies continuation of a decline even further, supposedly towards 1.5419, the most likely point of contact with the falling trend-line.
EUR/USD carries on consolidating just above 1.3485/53, failing to decisively overcome the force of gravity exhibited by this support lately.
After touching 0.8475 on Monday pair has been range bound between 0.847 and 0.840.
Although technical indicators send a very strong aggregate signal and market sentiment is strongly bullish, last few days suggest that pair is lacking catalyst to help the bulls to kick the pair up in to higher gear.
As 100-day SMA yesterday, 200-day SMA today did not provide enough support and pair dipped approximately 100 pips already and is hovering slightly above 1.03 supported by weekly S2.
Pair did not manage to advance far and at the moment is hovering below 127.
Last few trading sessions were very calm and the price fluctuated in a narrow range with a bottom line at 0.9078.