The European currency declined against the Japanese Yen for the second consecutive day, breaching the immediate support and reaching the Sep low.
Markets expected somewhat dovish Fed stance yesterday.
Bulls refused to give up just yet, causing the Greenback to outperform the Yen on Wednesday, even erasing Tuesday's losses.
This time the monthly PP failed to keep the Cable afloat, causing a 40-pip decline over the day.
Yesterday markets were driven by the decision of the Fed to project a possible a rate hike in December.
NZD/USD keeps consolidating between 0.68 and 0.67, and we need a close below the lower boundary in order to confirm near-term bearish outlook.
The accelerated up-trend we mentioned yesterday remains intact, which implies that near-term losses are to be limited by 1.3170, where we also have the 55-day SMA.
AUD/USD is currently eroding the 55-day SMA and weekly S1 at 0.7160. Unless today's FOMC statement is surprisingly hawkish, the pair has a good chance of rebounding in the short run.
For the time being the weekly S1 appears to be enough to keep the bears at bay. However, we retain a bearish bias with respect to the pair because of the recent downside break-out from the triangle.
The yellow metal advanced for the first time in four days on Tuesday, but gains did not exceed even the closest resistance represented by the weekly pivot point at 1,167.
Neither the 55-day nor the 200-day moving average was able to prevent an extension of the decline, meaning the US Dollar is likely to weaken even more in the next few days.
So far this week the bears have been unsuccessful in breaching the monthly PP, but the ‘sell' signals provided by the indicators convince us this is going to happen eventually.
EUR/USD treaded water during the session on Tuesday.
Despite the fact that the Kiwi-Dollar pair dropped through the rising support trend-line, the bears do not seem to be active.
USD/CAD has just established a new accelerated up-trend that suggests a bullish outlook as long as support at 1.3166 (reinforced by the 55-day SMA) remains intact.
Although the price closed above the monthly R1 yesterday, we continue to hold a negative bias with respect to the Aussie.
After a brief correction, which initially was expected to extend back to the 200-day SMA and monthly PP, EUR/JPY has once again come under strong bearish pressure.
Prices of the bullion have been largely unchanged in the past three trading days, even though the metal registered slight losses during each of those 24-hour periods.
Although USD/JPY is currently negating recent gains, the outlook on the currency pair is bullish, as it is undergoing a correction.
The Cable did not extend the latest decline yesterday, as the market confirmed support at 1.53, represented by the monthly PP and 20-day SMA.
A bounce back took place in the one-day chart for EUR/USD.
Although there was still some room for recovery, NZD/USD failed to extend the rally up to the 200-day SMA and violated the accelerate up-trend support line it had been forming since the end of September.
USD/CAD keeps recovering from 1.28. A new challenge for the rally is represented by the 55-day SMA at 1.3160, a close above which will imply a test of the monthly pivot point at 1.3260.
We no longer have a reason to be bullish on the Aussie, as AUD/USD missed an opportunity to recover after forming a double bottom.