On Wednesday the Euro had a very positive outlook against the US Dollar, as it was steadily gaining strength and climbed up to 1.1220.
While there is a low possibility of NZD/USD stepping above the monthly PP and 55-day SMA at 0.6830, we should note that there is still plenty of room for the pair to rise up to the 38.2% retracement of the 2014-2015 decline.
Slowly but steadily USD/CAD is making progress towards a major resistance area at 1.3370/10, where the 100 and 200-day SMAs are joined by the weekly R2 and monthly R1.
So far today AUD/USD behaves as expected—the price bounced off of the 200-day SMA, and now it is moving towards the weekly pivot point.
EUR/JPY pushed through the recent lows today, and the currency pair is now testing a solid support at the level of 122 yen, which has been proving to be important since the beginning of spring.
After rebounding on Tuesday from 1,206 to 1,214, the bullion suffered minor losses on Wednesday and ended the day's session at 1,212, as it bounced off the 100-day SMA at 1,218.
As it turned out, a failure of the pair to reach the upper bound of the recently formed pattern on Tuesday led to a breach of support at 110 yen, where the up-trend line is joined by the 55-day SMA and weekly PP.
GBP/USD moved even closer towards 1.4340/1.4290 yesterday, and a test of this demand area, created by the 100-day SMA, up-trend and monthly S1, will be a strong bullish sign for June.
The Euro depreciated against the US Dollar at the start of Wednesday's trading session and reached the point of 1.1114.
Despite strong Australian fundamentals published early today AUD/USD remains unable to surpass the 200-day SMA at 0.7250.
Although just yesterday it looked as if support at 122.80/70 is going to hold, today EUR/JPY appears to be focused on breaching both the weekly PP and the recently established up-trend.
NZD/USD left the boundaries of the channel that was supposed to guide the pair first to the 200-day SMA and then to the nine-month up-trend.
As noted previously, USD/CAD is well-positioned for a rally towards 1.3350/00, but there its bullish ambitions are likely to come to an end.
For the first time in ten days the bullion has finally gained value on Tuesday of this week. The price rebounded only slightly, and after touching the 100-day SMA at 1,218 gold was forced to make a setback to close at 1,214.
USD/JPY turned around before reaching the upper bound of the channel, and the currency pair is now testing the up-trend and 55-day SMA at 110 yen.
While trading within a rather poorly defined bullish channel (since late February), the Cable appears to be forming a double top with peaks on May 2 and May 25.
EUR/USD continued its rally in the first half of Tuesday and reached the 200-hour SMA at 1.1170.
Assuming that a recovery from 1.25 is a bullish correction after this year's massive sell-off from 1.46, the rate is likely to rise 250 pips more before resuming the decline.
The latest decline from 0.78 has already offset a half of this year's gains and AUD/USD stands ready to go even lower.
At this very moment NZD/USD is forming a bearish channel, and the pattern together with the majority of technical indicators suggests that the New Zealand Dollar will confirm resistance at 0.6760 and begin a new bearish wave towards the 200-day SMA.
EUR/JPY keeps respecting the recently stablished up-trend, implying that near-term sell-offs are to be limited by 122.80 yen.
Despite the fact that yesterday the bullion failed for a ninth consecutive day and closed below the March low, a continuous decline is not on the table yet.
Although the daily technical indicators are mostly bullish, short-term long positions are becoming risky, as the currency pair is approaching the upper bound of the recently established ascending channel.
As expected, the technical indicators turned out to be correct, and the Cable recovered from the weekly pivot point, even though there are massive resistances just overhead.