The selling pressure is likely to somewhat subside, considering that the currency pair is approaching a potentially tough support at 1.3582, consisting of the monthly S2 and weekly S1
The Kiwi plummeted below the monthly and weekly S1 at 0.8500/0.8496 today. The pair is trading at the lowest level since the beginning of March and that could provoke pair's bulls.
After yesterday's dive beneath the monthly S1 at 1.0859 the greenback has managed to regain some value to trade around this level again.
At the moment the Australian currency is on a sideways trend and it seems that traders are waiting for more volatility.
Today the Euro declined below the weekly PP at 138.81 this drop was mostly driven by the strong resistance at the 139 level.
At first there were doubts whether the 200-day SMA will be able to keep USD/CHF afloat.
USD/JPY appears to be hesitant to continue its advancement in view of closeness to a presumably tough resistance at 102.27/19, consisting of the 55 and 100-day SMAs, among others.
Although at first it looked as if the Pound is going to close above the weekly PP, in the end the bears overpowered the bulls and pushed the price back to the 15-month up-trend line
The currency pair proved to be unable to sustain a rally that was started after the weekend, as the Euro turned around and erased Monday's gains once it hit the weekly pivot point.
The Kiwi formed a unsuccessful attack towards the weekly PP at 0.8575. It seems the pair has lost its allure and therefore a decline is expected.
The U.S. Dollar weakened beneath the monthly S1 at 1.0859 for the second time this month already, after last time approaching this level at the beginning of this year.
The Aussie is gaining little by little, today it reached the weekly PP at 0.9271. We suspect the pair to appreciate towards the 20 and 55-day SMAs at 0.9303/11 if the weekly PP is broken.
The pair is trading above the weekly PP at 138.81 and is challenging the major level at 139.
While the beginning of this weeks does not look promising, the 200-day SMA, together with the weekly PP, should act as a support level and prevent further depreciation of the U.S. Dollar.
If the recently broken 200-day SMA proves to be a new reliable support, the currency pair may soon launch an attack on a combination of the 55 and 100-day SMAs near 102.20.
The Cable is currently eroding the supply area at 1.6855/51, a breach of which will pave the way towards a major level at 1.70.
EUR/USD recovered some of the losses yesterday, but the market is nevertheless considered to be bearish.
Last week the pair declined from monthly PP at 0.8622 to 0.8560 and later towards last year's 4Q high at 0.8544.
It seems that the pair started to form a sideways trend a few weeks ago in the range from the monthly S1 at 1.0859 and the weekly R1 at 1.0925.
At the beginning of the last week the Aussie dropped significantly and dropped around March highs/April lows around 0.9240 and ever since it has traded around these levels.
EUR/JPY is trading steadily around the weekly PP at 138.81, last week the pair almost touched the major level at 138.
As it turned out, the 200-day SMA was not able to keep the bulls at bay for long and eventually gave in.
USD/JPY managed to close above the 200-day SMA, and this is a good bullish signal
Last week's attempt to re-test the 2009 highs at 1.70 did not succeed, and GBP/USD declined.