Although at the end of the day instead of forming a red candle the currency pair closed higher, prior to that it managed to reach one of the major targets, namely the 2014 low at 1.35.
The pair started to decline at the beginning of May and since then the pair has lost almost 400 pips.
The greenback breached the weekly R3 at 1.0944 for a second straight day; however, it was not able to sustain its strength and slipped below this resistance level.
The Aussie has breached the major level and 55-day SMA at 0.9300/08 as it continues to trade not that far from the higher levels this year.
Today we have seen a rather significant weakness in Euro; therefore, the pair dropped below the major level at 139. If the weekly PP at 138.73 holds the Euro from falling lower then the currency could bounce back above the 139 level.
Ahead of this week's major fundamental events USD/CHF remains inactive, fluctuating just above the weekly PP.
The buying pressure may somewhat subside ahead of the resistance at 102.91 (weekly R3 and monthly R1), but this level should not pose a threat to the bullish outlook.
Although GBP/USD is supposed to move south, being that is has recently broken out of the bullish channel to the downside, the 100-day SMA continues to keep the pair afloat.
For now EUR/USD is oscillating between two weekly pivots points—at 1.3627 and 1.3587.
We have seen the Kiwi falling since the pair's sideways trend was broken at the end of March (March 28). Now we are seeing a new downtrend that is in a rather narrow range; therefore, a breakout could be expected.
The greenback successfully breached the weekly R2 at 1.0915 and most likely the next challenge will be the 55-day SMA and weekly R3 at 1.0938/44.
The Australian Dollar prolonged its advance that started yesterday. Even though the pair failed to consolidate above the weekly PP at 0.9279 we expect it to touch the monthly PP and 55-day SMA at 0.9306/07.
The Euro is still on a uptrend; however, today the pair has appreciated slightly and currently is trading around the monthly PP and 200-day SMA at 139.69/71.
Seems that USD/CHF is taking a short break after a protracted period of consecutive gains.
USD/JPY is explicitly bullish and is likely to stay that way at least until it reaches April's high and monthly R2 near 104.
Perhaps not at the initially estimated speed, but GBP/USD is nevertheless moving south.
Although the bias is negative towards the currency pair, for now the support at 1.3587 refuses to give in.
After falling yesterday the Kiwi managed to reverse some of the losses as the weekly S1 at 0.8434 stopped its decline and pushed the New Zealand currency higher.
It seems the greenback has regained its bullishness as the pair has appreciated for a third straight trading day. The next target is the weekly R2 at 1.0915, which should not be too much trouble for greenback.
After yesterday's more than 50 pips decline the Aussie has regained some of its lost value. Today it approached the weekly PP at 0.9279; however, it did not managed to trade there for long as it dropped back to trade around 0.9260.
The Euro extended its advance and at the moment it is challenging the weekly R1 and monthly PP at 139.49/69.
USD/CHF has already erased the losses made last week and it seems ready to advance even further from here.
The U.S. Dollar has finally broken through the ceiling implied by a number of studies, including the most relevant moving averages and the five-month down-trend.
Although the price has already risen back to the recently breached up-trend, which is supposed to be a bearish sign, the currency hesitates to decline.