Pair finished last week with very aggressive, 200 pip, rally and at the moment is trading just slightly below 0.97.
Pair started the week pretty much where it finished the last one—slightly above 1.28.
As soon as NZD/USD hit the down-trend resistance line at 0.7855/38, the currency pair was sharply sold off—it is now being traded at the key support—0.7730, settlement below which will reinforce the bearish outlook.
USD/CAD has finally started to realise its bullish potential, jumping beyond the interim resistance at 1.0576.
It did not even require AUD/USD to step up to the nearest resistance at 0.9199 to reverse its direction and start moving south.
As it was expected, the 55-day SMA turned out to be unable to hold the selling pressure and allowed the dip to extend down to the support at 128.57/36 that has repeatedly proved to be strong.
After trading around the 55-day SMA pair received bullish impetus from it and at the moment is testing weekly R2 just below the 0.96 level.
Pair did not manage to gain momentum and vigorously advance above the 101 JPY.
Yesterdays rally gave hopes that pair might advance above the 100-day SMA which eventually failed the pair and sent it 240 below its opening value.
Pair received a bearish impetus from the 55 and 100-day SMAs and sold off till the weekly S2.
"In a global risk-off environment, particularly when things are being triggered by say European events or events in the Middle East, I think the dollar will perform very well."- Alan Ruskin, Deutsche Bank AG (based on Bloomberg)Pair's OutlookFor the time being a formidable support line at 0.7730 is keeping the New Zealand Dollar buoyant. Accordingly, we might see some pressure
The technical indicators have become more united in showing that USD/CAD is bullish.
Presently the temporary relief is provided by the weekly S1 at 0.9054, but the rally is shallow and highly unlikely to make any significant progress.
EUR/JPY spiked down to the level of the weekly and monthly pivot points yesterday, but was able to return afterwards above the 55-day SMA at 129.89.
Although technical indicators point at an appreciation of the pair it seems that pair is more willing to trade in a range (100-day SMA to weekly R1).
Pairs closure above the 100 JPY lifted significant pressure from it and technical indicators give strong readings about the further appreciation of the pair.
"Planning for the monetary exit will be the big challenge of Carney's governorship. Remember that Carney raised rates in Canada in 2010 from 0.25 percent to 1 percent. He is one of few Western bank governors to have actually raised rates since the crisis."- Former Monetary Policy Committee (based on Independent Online)Pair's OutlookPair found support just slightly before the support
Few days ago pair depreciated by more than 100 pips after receiving a bearish impetus from the 55-day SMA.
The rising trend-line that may be drawn through the troughs formed on Mar 16 (2011), Nov 25 (2011) and May 23 (2012) is at the moment denying access of the currency pair to the lower levels, namely the supports at 0.7665 and 0.7610/73.
Yesterday USD/CAD touched upon 1.0576, but was unsuccessful at conquering higher levels, such as 1.0631 and 1.0676/72 that it should target in the medium term, but slid again back to 1.05, the weekly pivot point level.
The currency pair carries on grinding lower, it has already fallen down to 0.9054, but neither this support level nor the subsequent ones, those at 0.8905, 0.8822 and 0.8668, are viewed as capable of negating present downward impetus.
Although we were expecting EUR/JPY to rise up to 133.81/56 without much effort, fundamentals have again interfered with the development of the price, throwing it down to 128.57, where the weekly and monthly pivot points are currently stationed.
After a few sessions spent trading on the 55-day SMA, pair received a bullish impetus from it and advanced above the 0.95.
Pair advanced above the major level of 100 JPY.