After an explicitly bearish week there is a fairly high chance of a correction.
In order for USD/JPY to preserve a bullish bias, it is required to rebound from 101.27/19, the key support area that consists of the rising trend-line, 200-day SMA and 50% retracement of the November-December up-move.
Although GBP/USD received a strong bearish impetus after a test of the February's high, today the currency pair is not keen on declining, as it seems to have found support at 1.6704 (weekly PP).
Friday's price action and a large downside gap confirmed an assumption that there is a formidable resistance area between 1.39 and 1.395.
The kiwi performed well this week and set a new yearly high at 0.8745 yesterday.
This week we have seen AUD/USD advancing: it has broken weekly R1 and R2 (0.9328 and 0.9369) and at the moment the rate is oscillating just below the monthly R1 at 0.9412.
This week USD/CAD prolonged the decline, falling as low as 1.0857—the lowest level since the beginning of the year.
This week the Euro declined against the Yen; however, today there was been a slight gain and the currency is trading above the weekly S1 at 140.78.
USD/CHF maintains the course south. If it closes lower today as well, it will be a fifth bearish candle in a row.
The monthly S1 level, which had the potential to stop the sell-off from 104, was breached.
As suspected, an initial test of the resistance at 1.6822/1.6786 turned out to be unsuccessful.
EUR/USD continues to advance. It has just breached the weekly R2 and is about to hit the down-trend resistance line that connects peaks of the past six years.
The pair has set new more than a three year high again at 0.8745, after yesterday's rally.
USD/CAD slipped below monthly S1 and even below weekly S2 at 1.0889 earlier today; however, since then the pair has bounced back to trade around monthly S1 at 1.0912.
Yesterday pair's advance stopped near the major level at 0.94; although, today its appreciation was prolonged and the pair set new this year's high at 0.9460.
As expected the pair has received impetus from major 140 level and yesterday it already breached 141 level.
Just as many other resistances, the monthly pivot point also failed to stop the Euro from going higher.
The Cable may have gained a strong bullish momentum, but there are still tough resistances standing in its way.
While yesterday it appeared as if the bulls have finally taken control of USD/JPY, the current price action proves this theory to be false.
The bearish tendency of USD/CHF does not seem to be anyhow affected by the supports it violated during the past three days.
For the second straight day USD/CAD is attacking monthly S1 at 1.0912; although, it has not been able to break this level.
NZD/USD has prolonged its yesterday's rally and has set a new high this year at 0.8704, which is also the highest level in more than a three years.
The Aussie has continued to appreciate against the greenback with the momentum gained yesterday and it looks like it has stabilised above 0.93.
On Wednesday the pair depreciated and almost touched the 140 level; however, it did bounce back to trade around weekly S1 at 140.78.