Another rally on Monday caused the US Dollar to break out from the descending channel pattern, suggesting that more gains are likely to follow.
Almost all Friday's gains were erased yesterday, as the Cable slipped back under the 1.23 major level. No significant changes are expected today, as the GBP/USD pair more or less remains in a consolidation period.
EUR/USD completed the retracement it had been attempting on Monday, posting a green candle now which is somewhat consistent with theory, predicting a bullish outburst after the pattern is broken.
The NZD/USD pair appears to have begun its recovery slightly earlier than anticipated, as it failed to put the descending channel's support line to another test two weeks ago.
The US Dollar ended the year with a third consecutive decline, having lost 65 pips against the Canadian counterpart.
Even though the AUD/USD currency pair ended the last day of the year trading in the red zone, it still managed to retain its position above the 0.72 major level, falling in line with expectations.
As was anticipated, the European single currency outperformed the Japanese Yen on Friday, with the tough resistance cluster limiting volatility in front of the 124.00 mark.
There was no trading of Gold Monday morning, which led to a lack of motion in the XAU/USD price.
The USD/JPY currency pair managed to post some gains last Friday, retaking the 117.00 major and reconfirming the channel's borders.
The British Pound decided to end the day with a blast, as it successfully reclaimed the 1.23 major level on Friday, having surged 84 pips against the US Dollar.
Following a volatile session on Friday, EUR/USD entered this year with a small green candle on the morning session, testing the upper boundary of the most recent channel down.
During the first half of Friday's trading session the New Zealand Dollar retreated from the high level scored against the US Dollar during Thursday's trading.
Due to rising oil prices the Aussie received a boost on Thursday, adding 45 pips against the American Dollar.
The US Dollar retreated against the Canadian Dollar during the first half of Friday's trading session.
The Euro barely managed to recover from its intraday low yesterday, ultimately adding only 17 pips against the Japanese Yen.
The bullion traded above the third weekly resistance level, which is located at 1,158.04, on Friday morning.
Yesterday's decline in the USD/JPY pair's exchange rate was the last touch required in order to establish a descending channel pattern.
Although the British Pound successfully posted some gains against the American Dollar on Thursday, risks remain skewed to the downside.
During the early hours of Friday's trading session all of the technical analysis of the EUR/USD currency exchange rate experienced a shock.
Contrary to the rest of the market, the Kiwi scored gains against the US Dollar on Thursday.
The US Dollar fell at the start of Thursday's trading session against the Canadian Dollar.
The Aussie weakened against the US Dollar on Wednesday, but retained its position above the 0.7160 psychological support.
Yesterday the Euro once again failed to climb over the 123.00 major level, resulting in a mild bearish development of 75 pips.
The yellow metal's price jumped on Thursday morning and reached once more the second weekly resistance at 1,150.18.