All major currencies strengthened against the US Dollar on Friday morning and the Kiwi was no exception.
ownside risks dominated the USD/CAD currency pair on Thursday, as apparent by the strong bearish momentum which halted solely at the 1.2065 mark.
Contrary to expectations, the Aussie accelerated against the US Dollar on Thursday, thus breaching a medium-term channel and confirming the formation of a steeper junior channel up.
The Euro fluctuated significantly during the previous 24 hours, breaching all resistance and support levels along the way with no hindrance.
As it was expected, most of the previous trading day the yellow metal spent in an advance against the buck.
Even though a release of information on the Japanese GDP was worse than analysts anticipated, the last day of the week the currency pair started in a sharp downfall.
An upside momentum provided by the junior ascending channel in conjunction with release of information on the Halifax HPI as well as Mario Draghi speech helped the Pound to break through the upper trend-line of a senior descending channel.
In result of announcement of the EU Minimum Bid Rate as well as the subsequent Mario Draghi press conference, the Euro expectedly broke to the top and appreciated against the Greenback by 1%.
The bearish market sentiment took the upper hand on Wednesday and pushed the New Zealand Dollar through the 200– and 55-hour SMAs.
The Bank of Canada's decision at 1400GMT yesterday to increase the overnight rate from 0.75% to 1.00% disrupted all technical predictions about the pair's movement late on Wednesday and today.
Despite reaching the upper boundary of a senior channel on Tuesday, the rate returned to re-test the weekly R1 at 0.8022 for the second time.
The overall sentiment on Wednesday was strongly bullish for the common European currency.
Instead of trying to reach the monthly R1 at 1,348.36, using the 55-hour SMA as a springboard, the exchange rate stuck at the weekly R1 at 1,339.42 and stayed there until a release of data on the US ISM Non-Manufacturing PMI.
In accordance with expectations, most of the previous trading day the currency rate spent in an upward movement, using the weekly and monthly S1, as trampolines.
Contrary to expectations, the Pound did move horizontally for long but instead tried to break through the weekly R1 at 1.3077.
As it was expected, a pressure from a combination of the 55-, 100- and 200-hour SMAs neutralized any further attempts of the currency pair to slip to the bottom.
The New Zealand Dollar appreciated substantially against the Greenback on Tuesday, halting solely at the weekly R1 at 0.7262.
USD/CAD was trading along the 55-hour SMA during Tuesday's session without any attempts to move above the given line.
During the last 24 hours, the rate managed to reach the weekly R1 and the upper channel boundary at 0.8020 and fall back down to the 55-hour SMA.
Even though EUR/JPY demonstrated willingness to surpass the monthly PP mid-Tuesday, the prevailing bearish sentiment pushed the rate down to the weekly S1.
The way the yellow metal moved yesterday gives us an important clue for the further analysis. First, the buck failed to drag the pair down through the 55-hour SMA.
As it was expected, the currency rate continued to plunge in a falling wedge pattern, trying to reach the weekly S1 at 108.80.
Shortly after a release of information on the UK Services PMI the Pound got a strong upside momentum and in the upcoming seven hours advanced by 0.8% against the Greenback.
By the end of the previous trading day the currency pair had expectedly made a breakout from a short-term symmetrical triangle.