An hourly chart reveals that the Euro is moving against the American Dollar in a short-term symmetrical triangle, as traders await both Mario Draghi and Janet Yellen speeches that will be delivered later this day at the Jackson Hole Symposium.
The fall of the Kiwi against the Greenback continued as expected. However, by the middle of the day's trading the decline of the rate had stopped. The currency exchange rate stopped its decline at the most dominant patterns lower trend line, at the 0.72 mark.
USD/CAD is another pair, which failed to break the resistance of the 100-hour simple moving average. These developments enforce the need to use this indicator for technical analysis.
The AUD/USD pair failed to pass the resistance of the 55 and 100-hour simple moving averages. Instead the currency exchange rate was forced lower and fell down to reconfirm the lower trend line of the most dominant pattern.
The common European currency trades against the Japanese Yen as expected. The currency exchange rate has finally found support in the lower trend line of the medium term ascending channel pattern and surged to trade above the 129.00 mark.
The way the bullion moved yesterday confirmed that a theory that a support area formed by a combination of the 200-hour SMA and the weekly PP near 1,284.70 was a stronger barrier than the 55- and 100-hour SMAs.
Unfortunately for the buck, the assumption about an existence of a short-term ascending channel did not confirm, as the currency rate once again slipped to the monthly S1.
As forecasted on Wednesday, the British Pound continued to lose value against the American Dollar and slipped right through the weekly S1, which is located at the 1.2199 level. Such outcome additionally confirms that the pair is moving in a clearly expressed downtrend.
As it was expected, previous trading session the currency exchange rate spent in an upward movement that was inspired to some extent by a combination of the weekly PP together with the 100- and 200-hour SMAs, but mostly by a speech delivered by Mario Draghi in the early morning.
The New Zealand Dollar against the US Dollar has favored the long term traders, as it has fallen in the last few trading sessions like a rock.
The previous forecast for the USD/CAD pair was wrong on one account. The pair did not need the additional support of the weekly S1 at 1.25 mark to break the junior patterns resistance.
Positions Today Yesterday % Change Longs 39% 36% 7.69% Shorts 61% 64% -4.92% Indicator 4H 1D 1W MACD
As expected and forecasted on Tuesday, the common European currency continued to trade horizontally against the Japanese Yen. Due to that reason, the previous forecast remains in force.
In line with expectations, the rest of the previous trading session the yellow metal spent in a relatively flat movement against the US Dollar.
The way the currency pair ended up previous trading day shows how it is important in certain cases to take into account the overall market sentiment.
In accordance with one of the scenarios expressed yesterday, the currency exchange rate made a confident breakout from the rectangle formation and slipped to the bottom.
As it was expected, a release of information on the German Economic Sentiment, which appeared to be even less than analysts anticipated, notably affected valuation of the Euro.
The resistance level, which was suggested to be taken into account previously, has stopped the Kiwi's surge against the Greenback once again. Due to that reason the pair has declined.
As expected on Monday, the combined resistance of the 55-hour SMA and the upper trend line of the junior descending channel pattern stopped the pair just before the release of the Canadian Retail Sales.
The suspicions of more than previously known patterns affecting the AUD/USD pair have been confirmed. However, the rate is still expected to surge in the medium term.
As forecasted on Monday, the resistance cluster from the 128.80 to 129.00 levels has forced the EUR/JPY currency pair to decline in the borders of the medium term ascending channel pattern.
As it was expected, previous trading session the yellow metal spent in a steady surge against the American Dollar.
The USD/JPY exchange rate acted exactly as it was expected. Namely, it made the second attempt to break through the monthly S2 at 108.82, but failed.
The latest developments in the GBP/USD currency pair forced to partially review the situation.