As it was forecasted, the currency exchange rate failed to make any substantial moves yesterday.
Driven by solid upside risks since September 14, the New Zealand managed to breach a minor descending channel and even test the 50.0% Fibo and the weekly R1 near the 0.7345 mark.
After testing the bottom boundary of the ascending channel, USD/CAD accelerated for a couple of hours until the 23.6% Fibo was reached.
Following a breakout of the mediate-term descending channel, the Aussie failed to accelerate against the US Dollar, thus resulting in a narrow movement sideways.
After reaching the psychological level of 133.00 on Friday, it was expected that the Euro would weaken against the Yen and reach for the 55-hour SMA.
Even though information released about the US Core Retail Sales appeared to be worse than analysts expected, the pair did not manage to stay in a long term-ascending channel.
In line with expectations, until a release of data on the US Retail Sales the currency pair spent in an upward movement.
As it was expected, the Pound continued to appreciate against the US Dollar, following a speech delivered by the External BOE MPC Member Gertjan Vlieghe on Friday.
Due to release of negative data on the US Core Retail Sales, the Euro caught an upside momentum, which lasted until the pair met a resistance in the 1.1985-95 area.
The New Zealand Dollar was able to gain strength against the Greenback on Thursday and reverse circa 0.7190.
USD/CAD was trading in a narrow range on Thursday morning.
Despite being driven by downside risks mid-Thursday, the Aussie managed to reverse its position at the 0.7970 mark.
Geopolitical tensions involving North Korea and Japan have weighted heavily on the Yen, as risks-averse investors were taking their money out of this safe-haven currency.
In line with expectations, yesterday the exchange rate did not manage to make any significant moves.
As it was forecasted, in the middle of the day the currency pair indeed tried to soar to the weekly S2, which is located at the 110.98 level, but failed.
A decision of the Bank of England not to change the Official Bank Rate was expected to lead to sharp depreciation of the Pound.
As it was expected, first half of the previous trading session the currency pair spent near the monthly PP at 1.1881.
The steady sideways momentum that was driven the pair on Thursday, changed swiftly mid-session when the New Zealand Dollar breached the monthly PP at 0.7279 and plunged against the US Dollar.
An intersection of the 55– and 100-hour SMAs at 1.2140 proved to be a strong support for the US Dollar, as it failed to push below the given mark.
Despite the relatively uneventful trading since Tuesday, the Aussie plunged down to the 0.7970 mark mid-Thursday.
After reaching the 132.00 mark early on Wednesday, bears prevailed and send the pair for a decline down to the 131.20.
A release of update on the US PPI led to 0.97% appreciation of the buck against the yellow metal.
In line with expectations, the Dollar continued to advance against the Yen in a junior ascending channel, successfully crossing the upper boundary of a formed dominant formation.
As it was expected, a mismatch with experts' forecasts on the UK Average Hourly Earnings forced the pair to make a premature rebound and retreat towards the closest combined support level formed by the 100-hour SMA and the monthly R1 at 1.3208.