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.
After showing no distinctive movement on Monday, NZD/USD accelerated the following day and shot past the 55– and 100-hour SMAs.
The US Dollar remained stable against the Canadian Dollar in the second half of Monday's trading session.
The second half of Monday's trading session passed in a calm manner, as the price remained in the same narrow area for the whole period.
The pair's movement on Monday did not provide major changes to the overall price level.
In line with expectations, a resistance set up by the weekly PP at 1,339.42 together with the upper edge of a medium-term ascending channel neutralized the further surge of the bullion.
Yesterday the Greenback made a few attempts to break to the top through a combination of the weekly and monthly PP, but failed.
The first half of the previous trading day the currency pair, indeed, spent in a limbo between two combined support and resistance barriers.
Most of the previous trading day the currency pair spent in a horizontal movement, being squeezed between the weekly PP at 1.1918 and the monthly PP at 1.1881.
The strong momentum mid-Friday was contradicted by the same bearish impact, thus leaving NZD/USD with almost no gains.