Apparently, USD/CAD has regained its bullish momentum, after the sharp drop on Friday, as the pair gained yesterday and has prolonged its advance with a test of the 1.14 level today.
The Aussie has not enough of bullish momentum to breach the weekly PP and monthly S1 at 0.8649/59 for the time being.
Due to the weak performance of the Japanese Yen the Europe's shared currency was able to outperform the peer.
Despite the Greenback taking a hard hit from the up-trend at 0.9750 last week, the currency managed to recover some of the losses this Monday instead of preserving the downward tendency.
As it turned out, a more pronounced correction than the one observed on Friday was not necessary for the bulls to regain control of the market.
A rebound from the 2013 Q4 low and monthly S1 failed to extend beyond the weekly pivot point.
As suspected, the Euro had insufficient bullish momentum to move past the resistance around 1.25 (weekly PP and Oct low).
After climbing for the first two weeks of October, the NZD/USD cross lost its bullishness and it has posted three consecutive weekly losses.
USD/CAD lost around 100 pips on Friday; however, the pair still managed to post weekly gains.
The AUD/USD cross has not fluctuated much today, as it is trading around the weekly PP and monthly S1 at 0.8649/59.
EUR/JPY has slid below May high at 142.45 earlier today, after appreciating almost 200 pips in the last week.
Although USD/CHF succeeded at surpassing the previous maximum at 0.97, the pair remains unable to overcome the resistance represented by the trend-line that connects Aug 18 low and Nov 7 high.
USD/JPY failed to gain a solid foothold above the monthly R1 and retreated behind 114.70.
The Sterling is currently negating Thursday's losses, as the currency gained bullish momentum due to a recent test of the dense demand area near 1.5850 (monthly S1, Oct minimum and 2013 Q4 low).
The currency pair opened today with an upward gap after finding strong support at 1.2376 last week, represented by the weekly and monthly S1 levels.
The key level this week definitely has been the major level at 0.77, as it has served as a very reliable support level and it kept the Kiwi afloat despite the buck's strength.
The week in general has been defined by the US Dollar's strength and this currency pair has not been any exception, as the USD/CAD set a new this year's high at 1.1467.
After a strong beginning of the week and even stronger advance on last Friday, the EUR/JPY cross has lost its bullish momentum.
This has not been necessarily a good week for the Aussie's bulls as the currency has lost quite a some ground against the US peer.
"It all speaks to the story that the U.S. can sustain pretty strong growth even when there are concerns about growth slowing in places like China and the euro zone."- JP Morgan Private Bank (based on Reuters)Pair's OutlookThe American currency showed its strength in pairs with all major currencies, including the Swiss franc. Yesterday, the USD/CHF pair advanced more than
"Considering that the dollar was around 79 yen when our government started, it would not be a mistake to say it has fallen rapidly."- Japan's Finance Minister (based on Reuters)Pair's OutlookUSD/JPY pair was able to develop through an important resistance line around 114.70, which held the US dollar nearly for two days. The pair also surpassed a major level at
"Recent weak inflation numbers appear to have alleviated the pressure to tighten monetary policy. […] We think the risk of waiting a few more months to start raising interest rates outweighs the risk from a premature tightening." - National Institute of Economic and Social Research (based on New York Times)Pair's OutlookFollowing its pan-European peer, the British currency lost value against the
"Draghi signaled that additional monetary easing was in the pipeline. Further action could be announced as soon as next month's meeting - ABN Amro Bank NV (based on Bloomberg)Pair's OutlookEUR/USD pair declined substantially on Thursday and reached the level of monthly S1 at 1.2376. The new 2014 low, however, was set even lower around 1.2363, but the single currency managed to
NZD/USD remains bearish by setting lower highs and lower lows. Today the pair has reached the weakest trading level since May 2012 at 0.7669; moreover, there is a potential of the Kiwi slipping even lower.