EUR/JPY spiked down to the level of the weekly and monthly pivot points yesterday, but was able to return afterwards above the 55-day SMA at 129.89.
Although technical indicators point at an appreciation of the pair it seems that pair is more willing to trade in a range (100-day SMA to weekly R1).
Pairs closure above the 100 JPY lifted significant pressure from it and technical indicators give strong readings about the further appreciation of the pair.
"Planning for the monetary exit will be the big challenge of Carney's governorship. Remember that Carney raised rates in Canada in 2010 from 0.25 percent to 1 percent. He is one of few Western bank governors to have actually raised rates since the crisis."- Former Monetary Policy Committee (based on Independent Online)Pair's OutlookPair found support just slightly before the support
Few days ago pair depreciated by more than 100 pips after receiving a bearish impetus from the 55-day SMA.
The rising trend-line that may be drawn through the troughs formed on Mar 16 (2011), Nov 25 (2011) and May 23 (2012) is at the moment denying access of the currency pair to the lower levels, namely the supports at 0.7665 and 0.7610/73.
Yesterday USD/CAD touched upon 1.0576, but was unsuccessful at conquering higher levels, such as 1.0631 and 1.0676/72 that it should target in the medium term, but slid again back to 1.05, the weekly pivot point level.
The currency pair carries on grinding lower, it has already fallen down to 0.9054, but neither this support level nor the subsequent ones, those at 0.8905, 0.8822 and 0.8668, are viewed as capable of negating present downward impetus.
Although we were expecting EUR/JPY to rise up to 133.81/56 without much effort, fundamentals have again interfered with the development of the price, throwing it down to 128.57, where the weekly and monthly pivot points are currently stationed.
After a few sessions spent trading on the 55-day SMA, pair received a bullish impetus from it and advanced above the 0.95.
Pair advanced above the major level of 100 JPY.
Major support line at 1.52 (median of the price expectations of major market participants) and Fibo 23.6% (mid-May to mid-June rally) at 1.519 did not manage to support the pair.
Pair received a bearish impetus from the 55 and 200-day SMAs close to 1.31, dipped by almost 100 pips (breaching major support at 1.30) and at the moment is trading slightly above the weekly S1.
NZD/USD failed to sustain a recovery, failing to extend gains in light of the vicinity of the resistance line at 0.7855/43; however, the demand around 0.7730 has been successfully underpinning the pair for the recent weeks.
The weekly R1 level at 1.05, currently acting as the support, was more than enough to initiate a rally up to 1.0576 today that seemed quite distant before.
AUD/USD realised its downside risk after surprising with a strong rally yesterday.
The currency pair effortlessly passed through the 55-day SMA and is about to surpass the weekly R1 level at 130.48 as well.
For quite some time now pair has been trading at the 55-day SMA at 0.945.
Pair is continuing to slowly appreciate and at the moment is aiming at the 100 JPY.
Pair continues to be rather passive and remains just slightly above the 1.52.
After a few failed attempts to breach the 100-day SMA pair finally managed to close above it.
Despite the most technical studies pointing to the downside, NZD/USD refuses to approach supports beneath 0.7730, such as 0.7665 and 0.7627.
Last week USD/CAD's up-move stalled around 1.0540, but this week and onwards we expect higher trading levels, as suggested by the daily and monthly technical indicators.
This week AUD/USD started on a positive note, as it is currently trimming the losses posted on Friday.