As expected, the common European currency continued its free fall against the Japanese Yen on Thursday, thus allowing the currency pair to lose further 103 base points of its value by the end of trading session.
The resistance of the simple moving averages managed to force gold prices lower. The descent had almost reached the 1,200.00 level by the middle of Friday's trading session.
The USD/JPY on Friday morning remained near the previous levels as on Thursday. However, there was a new very important detail revealed about the currency exchange rate.
Although the Bank of England hiked their interest rate, which caused a jump of almost 50 base points in the GBP/USD, the rate retreated after encountering resistance.
In the second half of Thursday's trading session the Euro declined below the lower trend line of a dominant pattern against the US Dollar. Namely, the rate dropped below the support of the large scale triangle pattern.
The triangle pattern of the NZD/USD exchange rate which was drawn on Wednesday has been broken by strong bearish momentum. The pair dashed through the lower boundary of the pattern during the early hours of Thursday's session.
Despite several attempts made by bulls to take control of the market and push the rate higher on Wednesday, the movement of the US Dollar was guided by bearish sentiment and the 55-hour simple moving average.
The Australian Dollar continued to weaken against the US Dollar on Wednesday after the currency pair breached a significant support cluster set by the combination of the weekly and the monthly pivot points near the 0.74 mark.
Wednesday's session brought weakness to the EUR/JPY currency pair, with the rate losing 107 base points lower from its previous high at 131.15. During this short period of decline, the pair broke out through the bottom border of an ascending channel.
The yellow metal on Wednesday broke all the previously charted trend lines on the hourly chart of the yellow metal's price.
Dukascopy Analytics already wrote in the Trading Idea published on Wednesday that the USD/JPY currency exchange rate, after massively surging on Tuesday and Wednesday, was set to decline or trade sideways.
The medium term trend line, which held its ground on the GBP/USD charts at the end of August, has managed to provide enough downwards momentum for the currency rate to book a certain decline.
The common European currency continued its decline on Thursday against the US Dollar, as the currency exchange rate reached below the cluster of levels of significance near the 1.1680 mark.
Bears picked up momentum on Tuesday after the NZD/USD exchange rate hit the upper boundary of a triangle pattern. However, the decline was not too significant as the pair ended the day with just 31 pips decline.
The downtrend channel that has guided the US Dollar lower against the Canadian Dollar continued on Tuesday. However, the decline was temporarily stopped by the weekly S1 at 1.2992.
The Australian Dollar was guided by the newly drawn ascending channel on Tuesday against the US Dollar. The currency pair traded above a support cluster formed by the combination of the weekly and the monthly pivot point near the 0.7409 mark.
Upside risks prevailed in the market on Tuesday and thus allowing the single European currency to strengthened by 144 base points against the Japanese Yen. This made the exchange rate breached some significant resistance levels. Namely, the weekly and the monthly pivot points and the combination of the 55-, 100-, and 200-hour SMAs.
Gold has been trading sideways against the US Dollar since Friday, as it has been stranded in a narrow range between the 55-, 100– and 200-hour SMAs and the 1,218.50 mark.
USD/JPY gained 83 pips on Tuesday after accelerating from the senior channel near 111.00.
Some bullish momentum was apparent in the market on Tuesday morning.
The Euro edged higher during the morning hours on Tuesday.
The New Zealand Dollar was constrained in a newly drawn junior ascending pattern on Monday against the US Dollar and thus sending the exchange rate to breached the upper boundary of a downtrend line.
Downside risks prevailed in the market on Monday, thus allowing the US Dollar to declined by 82 pips or 0.63% against the Canadian Dollar. This crashed, however, was limited by the weekly support level at 1.2993.
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