After the first two days of the week without any activity USD/JPY has revealed its propensity to decline.
Yesterday's dip was unable to violate a falling trend-line at 1.5428, as bulls managed to delay formation of a down leg by initiating a shallow rally this morning.
Being that presently the currency pair is trying to overcome the nearest resistance 1.3408/1.3388, we are more confident that the bearish correction is now over.
Since NZD/USD was unsuccessful at gaining a foothold above a key resistance line, most of the action during at least the second part of the current month is likely to be seen beneath 0.8476.
Surprisingly, resistance at 1.0116/02 was overcome sooner than expected, but the trend is still evolving according to previous estimations.
The bulls have pushed the price up to 1.0336 unhindered. Now the motion north should encounter strong selling pressure.
Even though our view is skewed towards re-emergence of a rally and subsequent erosion of 127.94, the currency pair is presently in a lull, as the whole market, refusing to decisively move in any specific direction.
As in the other major currency pairs, there is no action in USD/CHF as well.
The currency pair failed to keep fast pace of appreciation, showing willingness to close the bearish gap prior to recommencing a recovery.
The price continues to exhibit indecisiveness just above the declining support line at 1.5420.
EUR/USD appears not to be in a hurry to erode the 55-day SMA that guards a key support zone at 1.3274/53.
Even though technical indicators on all three relevant time frames were and still are univocally bullish, the rally did not reach far beyond 0.8476, topping out at 0.8533 and sharply falling subsequently.
For now USD/CAD is static, but is considered to preserve some part of the bullish impetus seen last Friday that should be demonstrated later on, driving the price up to the rising resistance line, namely to 1.0159/40.
Although at first the pace of Aussie's anticipated depreciation remained fast, following an encounter with 1.0371/61, today the pair has already closed the bearish gap, while gaining the bullish momentum.
The rising support line that connects the minima since Nov 14 has once again proved to be topical to the market, sending the price straight upwards after the currency pair had touched upon 123.29/122.99.
Now solely the 55-day SMA at 1.3317 is separating the spot price from a key support area at 1.3274/56.
The currency pair is slowly crawling upwards and the rally looks fragile, being that USD/CHF is approaching the upper edge of a falling 150-day long channel at 0.9304/0.9294, while technical studies are bearish, suggesting that a reversal is underway.
USD/JPY proceeds with the positive tendency it initiated at the very end of Friday, starting this week on a positive note with an upside gap.
The Cable has stalled ahead of the declining support line at 1.5446/30, calling into question whether the Sterling is going to lose in value even more or the price has finally bottomed out.
NZD/USD has posted a new 16-month high at 0.8533, but is struggling to preserve upward momentum, facing strong selling pressure.
USD/CAD did not even require a pullback down to the 200-day SMA at 0.9940 in order to fully regain bullish impetus and spike up to the interim resistance at 1.0089/71, which guards a subsequent level at 1.0107/06—a key to a rally up to the upper edge of the bullish channel the pair has been trading within for the past six
As expected, AUD/USD proved to be unable to gain a foothold above 1.0343/36 and is declining.
EUR/JPY swings from side to side this month, being trapped by a 34-month high at 127.94 from above and a support level at 123.29 from below.
Yesterday USD/CHF finally breached into an area bounded by 55-day and 100-day SMA.