Due to dovish comments made by the ECB as well as publication of better than expected result on the American Core Retail Sales, the currency rate managed to break combined support level formed by the weekly and monthly PP as well as three other moving averages.
The New Zealand Dollar has been a long time trading in a narrow channel up pattern against the US Dollar. However that is about to change.
During the first half of Thursday's trading session the US Dollar confirmed the location of a previously speculated support line against the Canadian Dollar.
On Thursday the full breaking and ignoring of the previous long term and short term patterns on the AUD/USD could be observed. However, the breaking of those patterns could be expected.
On Thursday the markets were expecting the ECB rate decision. As the announcement came, the EUR/JPY currency exchange rate surged and broke the resistance line.
After forming an inverse head and shoulders pattern and bouncing off from the weekly S2 at 1,235.93 the yellow metal managed to advance by 1.23% against the buck.
Due to interest rate hike by the Federal Reserve, the currency exchange rate got a downside momentum, which lasted until the pair reached the last combined support level formed by the weekly S1 and the 50% Fibonacci retracement level at 112.45.
Despite the pressure from three moving averages as well as from other technical indicators, the pair ended the day near the 1.3420 mark.
As the currency rate was falling the last three weeks in a row, traders used the Federal Funds Rate hike to sell the Dollar and elevate the pair to the 1.1844 level.
The New Zealand Dollar has been appreciating gradually against the US Dollar during the past two trading sessions.
Despite higher volatility that was apparent mid-Tuesday, the US Dollar failed to reach the five-month high of 1.2910.
AUD/USD has not made significant positioning changes since last session.
The common European currency was stranded by the 55-hour SMA during the first half of Tuesday.
Due to anticipation of the upcoming decision on the interest rate hike, the exchange rate continued to move horizontally between the 55-hour SMA and the monthly S2 from the top as well as the 50% Fibonacci retracement level and the weekly S1 from the bottom.
Despite release of better than expected US PPI data, bulls could not push the pair through resistance zone located between the 113.67 and 113.74 marks.
Until release of data on the American PPI, the cable was moving below the monthly PP, as expected. But then publication of better than anticipated result led to active appreciation of the buck, which pushed the rate through support zone located between the 1.3338 and 1.3331 marks.
In accordance with expectations, until release of information on the US PPI the currency rate was slowly fluctuating near the 55- and 100-hour SMAs. But since the data was better than analysts' expected the pair broke through the 38.2% Fibonacci retracement level and once again ended up in support zone located between the 1.1730 and 1.1722 marks.
Following the massive surge early on Monday, bears managed to regain some of their positions later in the day.
USD/CAD has shown no significant changes to its overall price level during the past three trading sessions, as it has failed to leave the 1.2822/72 area.
The Australian Dollar remained relatively unchanged against the US Dollar on Monday, as it was fluctuating between the 55– and 100-hour SMAs.
EUR/JPY had been stranded in a narrow 133.81/133.52 range for the second consecutive session.
In line with expectations, the falling 55-hour SMA did allow the bullion to recover against buck. As a result, the rate was forced to find support at the 50% Fibonacci retracement level located at 1,240.30.
During yesterday's trading session the currency exchange rate made two attempts to break to the bottom towards the 50% retracement level located at 113.00.
In result of the previous trading session the cable made a rebound from a combination of the 55-, 100- and 200-hour SMAs as well as the weekly PP at 1.3415 just as expected.