Although the U.S. Dollar is not as lively as expected after diving to 101.53, the currency is nevertheless grinding higher.
After the Cable approached the 200-day SMA, the currency pair received a strong impetus and covered a portion of the losses made last Friday.
EUR/USD is currently eroding the weekly S1 at 1.3350, a breach of which is expected to lead to a test of the 2013 Q4 low at 1.33.
NZD/USD touched the 0.84 today; however, it bounced back to trade around the long-term up-trend support line at 0.8435.
The U.S. Dollar tested the weekly PP at 1.0954 today, after yesterday the pair slid below this level. We expect the pair to pick up and to breach the weekly PP in the short run; however, in longer period the major level at 1.10 should be broken.
The Australian currency is still looking for a driver as the pair seems stuck above the 0.9250 mark. Possibly the strong support levels (weekly and monthly S1 at 0.9222/19) are scaring away the bearish traders.
The pair prolonged its both—shorter and longer term declines and slipped below the 136.50 level. Meanwhile, EUR/JPY is entering a narrower range of trading, meaning that we might see a break-out.
The currency pair is presently recovering, but it has to gain a foothold above 0.91 to confirm its bullish intentions.
USD/JPY started this week on a strong footing, as it rebounded from the key support last week.
For the time being the monthly S1 level seems to be able to hold the bears.
Behaviour of EUR/USD yesterday confirmed that the bias is to the downside, as the rally from 1.3350 failed to remain intact.
The Greenback continuously trades around June high at 1.0961, which tends to slow down the pair's advance for now.
AUD/USD has little changed today, after last week's fluctuation, when the pair breached the monthly PP at 0.9362 and later dropped below Bollinger Bands at 0.9258.
Last week EUR/JPY dropped below the weekly and monthly S1 at 136.23/135.81 reaching a new 2014 low at 135.72; however, the pair managed to reverse the losses the same day.
Previous week was not any different from the one's before as the pair depreciated below the 200-day SMA at 0.8503 and prolonged its down-trend.
The Greenback remains below 0.91, the last hurdle that needs to be overcome to reach this year's high.
As turned out, USD/JPY required assistance of the major rising trend-line at 101.53 in order to preserve chances to rally.
GBP/USD has just hit the monthly S1, and if the bears keep forcing the pair to go lower, there are also the 200-day SMA and May low that are ready to help the Sterling.
The support at 1.3350 proved to be significant last week by keeping the Euro away from 2013 Q4 low.
Though most of the daily technical indicators (five out of eight) are pointing South, NZD/USD is unlikely to give up any more ground, the reason being a strong cluster of supports around 0.84.
USD/CAD is struggling to overcome the resistance at 1.0979/60, represented by the weekly R1 and June high.
Yesterday the pair confirmed presence of an accelerated falling resistance trend-line and slid down to the weekly S1.
EUR/JPY punched through this year's low that was established on Feb 4, but the bias is to the upside.
USD/CHF remains unable to cross 0.91, as it keeps getting pushed back after every attempt to get closer to the 2014 high.