The US Dollar stopped its depreciation against the Canadian Dollar on Monday. The reason for the stop of the surge and a resulted short term surge was the encountering of a combined support level at the 1.24 mark.
The Australian Dollar on Monday stopped the surge against the US Dollar, as the pair encountered medium term ascending channel pattern's resistance line. Moreover, the resistance was strengthened by the weekly R1 at the 0.7960 level.
There have been minor developments in the situation on the EUR/JPY hourly chart. By the middle of Monday's trading session the currency exchange rate had extended the surge, which began last week.
The yellow metal continues to gain momentum against the US Dollar for the fourth consecutive session.
Driven by its broad-based weakness against a basket of currencies, including the Yen, the US Dollar continues to approach a four-month descending channel with its lower boundary located near the 110.00 mark.
GBP/USD is likewise taking advantage of the weaker US Dollar, thus managing to surge 1.49% in a matter of one session.
The Euro continues to take advantage of the weakened US Dollar, driven by hopes on the new German coalition.
The Kiwi was driven by strong upside momentum on Thursday as a result of which it tested the 0.7270 mark late in the evening.
The US Dollar maintained a stable position against the Loonie on Thursday, thus trading between 1.2580 and 1.2530 for the whole session.
The Australian Dollar remained stable during the first part of Thursday.
The common European currency started Thursday's trading session with slight losses.
Contrary to prognoses, the upper trend-line of a four-month long descending channel could not constrain the yellow metal from breaking above the 1,230.00 level.
Due to overall weakening of the Dollar triggered by the negative US PPI release and the ECB Meeting Minutes, the currency rate acted in accordance with second scenario.
In first half of yesterday's trading session the currency rate reached support level formed by the bottom trend-line of a junior descending channel and monthly PP at 1.3458.
Due to release of the minutes of the European Central Bank's December meeting the common European currency appreciated against the buck by 0.87% just in couple of hours and reached the weekly PP at 1.2040.
NZD/USD was stranded between the 55– and 100-hour SMAs and the weekly and monthly R1s during the previous session.
After testing the 55-hour SMA mid-Wednesday, bulls took over the market, thus allowing for a price increase up to the 1.2580 mark.
Upside risks prevailed in the market on Wednesday and thus sent the Aussie for a surge against the US Dollar.
Despite signals pointing to a possible recovery during the previous session, EUR/JPY failed to overcome the bearish pressure, thus ending the day with a 122-pip fall.
Contrary to expectations, the exchange rate failed to sneak below the combined support formed by the lower trend-line of a junior ascending channel and the 200-hour SMA.
Due to fears of a large reduction in foreign Dollar asset purchases, the American currency fell by 0.86% against the Yen just in couple of hours.
In essence, the past 24 hour the cable spent testing different support levels.
As it was projected yesterday, bulls did not succeed to push the Euro through second combined resistance barrier formed by the weekly S1 together with the 100- and 200-hour SMAs.
Following a slight period of consolidation on Tuesday, the New Zealand Dollar was driven by strong upside risks today.