The Cable started this week beneath the 2014 low (1.6250), as result of a 150-pip large downside gap.
There is likely to be a deeper correction than the one seen on Friday after a massive sell-off on Sep 4.
NZD/USD has lost some of its value this week; however, not significantly. At the moment of writing, the pair is hovering around the weekly S1 at 0.8308.
Even though the pair has fluctuated in a relatively wide range through this week at the moment it is trading almost at the same level were it opened on Sunday.
On Tuesday the Australian currency found a reliable support level (weekly S1) at 0.9277 and from this point onwards the pair started to climb towards the 0.94 mark.
After posting gains at the beginning of the week the pair has dropped for a second straight day and even touched the major level at 136, while this week's high was set at 138.28.
USD/CHF disregarded the ‘sell' signals on the monthly chart and soared through a dense supply area at 0.9250, which was mainly created by the 2013 Q4 high and monthly R1.
USD/JPY continues to advance, and it has already managed to post new yearly highs.
Strong Dollar does not allow the Pound to commence a recovery, which is implied by the monthly technical indicators.
As a rhetoric of the ECB turned out to be more dovish than expected, EUR/USD plummeted more than 200 pips yesterday.
The New Zealand's currency is starting to recover from the Tuesday's decline, as the currency pair is moving closer to the weekly PP at 0.8358.
The pair started the week strong by breaking the 1.09 level on Tuesday; however, in the second part of the week we are seeing a different trend to emerge.
After the sharp decline on Tuesday, the pair has not only reversed the previous losses but also it has managed to gain.
The advance that we saw at the beginning of the week suggested that the Europe's currency have gained a bullish impetus and is poised for a further appreciation.
Though many of the daily and weekly studies were bullish, USD/CHF failed to close above 0.92 and instead returned to the weekly PP level.
As expected, the resistance at 105.50, represented by the 2014 high, proved to be a formidable obstacle by sending USD/JPY back to the weekly R2. And the sell-off may extend even further.
The Sterling stopped moving a day before the MPC rate statement, and for now it is underpinned by the monthly S1 level.
Most traders are in a wait-and-see mode before this week's major event, and the market remains unwilling to break any of the important levels.
NZD/USD has just formed a bearish channel, meaning the Kiwi is likely to continue underperforming.
Following a breach of a two-month up-trend to the downside, USD/CAD managed to find support at 1.0858, where the Apr low coincides with the 55 and 100-day SMAs.
AUD/USD continues to exhibit a lack of trend, as it has been trading between 0.95 and 0.92 since the second quarter of this year.
Since EUR/JPY has recently broken out of the falling wedge and confirmed the upper edge of the pattern to be the new support, the pair is in a good position to move further North.
Just like the Euro, the Franc is also largely unchanged with respect to the Dollar, even though the latter seems to be in demand throughout the market.
The bearish risks were not realised, and the pair soared up to 105.50—a major obstacle for further advancement, since this year's highest point.