The US Dollar has managed to maintain its strong position against the Loonie for the third consecutive session even despite signs of a possible reversal.
During the previous trading session, the Australian Dollar was fluctuating between the 200-hour SMA and the monthly S1 in the 0.7592/0.7558 territory.
Following a 45-pip surge mid-Wednesday, the common European currency did not lose its upside momentum and thus managed to surge up to the 133.23 mark—a level that had already provided an unbreakable resistance last week.
An estimated growth of the US GDP expectedly strengthened the buck and reduced demand for the safe haven metal even though the plunge was not expected to be so sharp, as southern side was reliably protected by two moving averages that were moving along the trend-line of a rising wedge formation.
Even though there were attempts to push the pair back to the 55- and 100-hour SMAs, anticipation of the upcoming US GDP data release and the event itself inched the buck higher.
On the one hand, the cable has reached the forecasted target at the 1.3406 level. On the other hand, the upper boundary of the junior ascending channel that was backed by the weekly S1 could not constrain the further surge.
As it was forecasted yesterday, the resumption of surge towards the 1.1910 level was halted in resistance zone that contained both the weekly PP with the 55-hour SMA as well as the 61.8% Fibonacci retracement level and the 100-hour SMA.
The New Zealand was driven primarily by downside risks on Tuesday as a result of which it fell back down to the lower channel boundary circa 0.6890.
As apparent on the chart, the US Dollar has appreciated substantially against the Loonie during the past two trading sessions.
Following Tuesday's session of non-directional fluctuations between the 55-, 100– and 200-hour SMAs and the weekly PP, the Australian Dollar breached the latter two and edged lower.
After being squeezed between the 55– and 200-hour SMAs during the first part of Tuesday, bulls gained strength and thus sent EUR/JPY for a fall down to the weekly S1 at 131.58—a level that likewise intersects with the lower boundary of a two-week channel.
The second half of previous trading session the exchange rate spent in horizontal movement. A release of better than expected US consumer sentiment data pushed it to the bottom, while another launch of ICBM by North Korea gave a reason to continue the surge.
For the first time in many weeks, reports about another ballistic missile launch made by North Korea did not led to appreciation of the Yen.
As it was warned yesterday, publication of encouraging news from the United States one after another led to notable appreciation of the buck whose surge was stopped only is support zone located around the weekly S1 at 1.3231.
In line with forecasts, an improvement in consumers' sentiment dragged the pair to the weekly PP at 1.1864, while the subsequent news that two hesitating senators agreed to join other Republicans to support tax reform pushed the pair even further to the monthly R1 at 1.1826.
The New Zealand Dollar was pressured by upside risks on Monday, thus resulting in a 49-pip appreciation against the US Dollar within one session.
After testing the 1.2680 area on Monday, bulls prevailed and thus sent the US Dollar for a 85-pip surge up to 1.2770.
Despite surging above the upper boundary of the senior channel mid-Monday, the Australian Dollar had returned back in the given channel in the evening.
Bears dominated EUR/JPY on Monday. As a result, the Euro lost 89 pips against the US Dollar, thus testing the 100-hour SMA circa 132.15 by late evening.
In line with expectations, the yellow metal continued to rally against the buck on Monday.
After making a rebound from the upper edge of the currently active descending channel, the pair slipped through the 38.2% Fibonacci retracement level and landed on the weekly S1 at 110.84.
During previous trading session the cable surged to resistance zone located at 1.3370-1.3380 and then pulled back to the 1.3220.
After reaching the 1.1960 level the currency exchange rate returned back to the 55-hour SMA located at 1.1900, as expected.
Following the prevalence of bears on Friday, the New Zealand Dollar hit the 100-hour SMA and the weekly PP circa 0.6860 early in this session and turned to the upside.