It seems that the US Dollar is likely to prolong its yesterday's decline, as it has touched the 20-day SMA at 1.1291 today.
The Aussie continues its rebound from last week's 200-pip slump; although, the pair managed to appreciate just slightly today.
EUR/JPY has dipped below the major level at 144, after yesterday's advance of 144.72,which is just 40 pips away this year's high.
"The 2012 precedent suggests that the SNB might intervene and purchase euros at around 1.2010."- UBS (based on Bloomberg)Pair's OutlookAfter an unsuccessful attempt to breach the Oct high at 0.9687, the pair continues to hover below this important level for a third day in a row. It has even plunged even more, namely below the weekly pivot point at 0.9658.
"The market's looking at the discussion of the possibility of a Japanese election as a negative for the yen. Pressures are likely to remain in place as long as the incentives to invest abroad are in place and the Japanese economy underperforms."- Citigroup (based on Bloomberg)Pair's OutlookUSD/JPY pair took a pause below the weekly R1 at 115.87, as it is
"Japan's experience and now Europe's current situation both indicate that indifference to very low inflation rates can generate a significant loss of confidence in the ability of a central bank to hit its inflation goal."- Boston Fed President Eric Rosengren (based on Reuters)Pair's OutlookGBP/USD currency pair returned back to the levels seen in the middle of the previous week, as
"There are many indicators that tell us interest rates are too low."- Philadelphia Fed President Charles Plosser (based on CNBC)Pair's OutlookAfter a confirmation of the resistance line at 1.25, the EUR/USD pair returned back below this level and is trading there for a second consecutive day. Concerning the fact that today there are no bullish signals on a daily chart
The NZD/USD cross is not actively trying to climb higher and to reverse its losses; however, currently it also looks quite well supported around the weekly PP at 0.7756.
Apparently, USD/CAD has regained its bullish momentum, after the sharp drop on Friday, as the pair gained yesterday and has prolonged its advance with a test of the 1.14 level today.
The Aussie has not enough of bullish momentum to breach the weekly PP and monthly S1 at 0.8649/59 for the time being.
Due to the weak performance of the Japanese Yen the Europe's shared currency was able to outperform the peer.
Despite the Greenback taking a hard hit from the up-trend at 0.9750 last week, the currency managed to recover some of the losses this Monday instead of preserving the downward tendency.
As it turned out, a more pronounced correction than the one observed on Friday was not necessary for the bulls to regain control of the market.
A rebound from the 2013 Q4 low and monthly S1 failed to extend beyond the weekly pivot point.
As suspected, the Euro had insufficient bullish momentum to move past the resistance around 1.25 (weekly PP and Oct low).
After climbing for the first two weeks of October, the NZD/USD cross lost its bullishness and it has posted three consecutive weekly losses.
USD/CAD lost around 100 pips on Friday; however, the pair still managed to post weekly gains.
The AUD/USD cross has not fluctuated much today, as it is trading around the weekly PP and monthly S1 at 0.8649/59.
EUR/JPY has slid below May high at 142.45 earlier today, after appreciating almost 200 pips in the last week.
Although USD/CHF succeeded at surpassing the previous maximum at 0.97, the pair remains unable to overcome the resistance represented by the trend-line that connects Aug 18 low and Nov 7 high.
USD/JPY failed to gain a solid foothold above the monthly R1 and retreated behind 114.70.
The Sterling is currently negating Thursday's losses, as the currency gained bullish momentum due to a recent test of the dense demand area near 1.5850 (monthly S1, Oct minimum and 2013 Q4 low).
The currency pair opened today with an upward gap after finding strong support at 1.2376 last week, represented by the weekly and monthly S1 levels.
The key level this week definitely has been the major level at 0.77, as it has served as a very reliable support level and it kept the Kiwi afloat despite the buck's strength.