As it turned out in the end, the bullish impetus AUD/USD exhibited yesterday proved to be unable to pierce through the resistance created by the August low and the weekly pivot point.
While yesterday the Euro continued to steadily appreciate relative to the Yen, today's trading session was associated with much more volatility and indecision.
While being supported by 0.9091/59, USD/CHF is cautiously approaching the resistance at 0.9176/60 (200-day SMA), which is a key to the long-term advancement of the currency pair.
Despite a plethora of signs in favour of USD/JPY's recovery, the currency pair seems to have already pared all of the yesterday's gains—it is rapidly moving back towards the support created by the monthly PP and the 2013 highs.
GBP/USD continues to surprise. Following a violation of the monthly pivot point, the currency pair shot through the resistance level at 1.65 and nearly reached the recent highs at 1.66, as it managed to cover 100 pips in a day.
Yesterday EUR/USD did make an attempt to breach the resistance at 1.3581, which would allow the currency pair to challenge the 100-day SMA and the rising trend-line, but it failed.
Although NZD/USD did confirm the resistance at 0.8324/09 yesterday as a notable level, the rate keeps on rising, thereby once again endangering intactness of the up-trend line that may be drawn through the troughs staged from Dec 30 to Jan 16.
Being that USD/CAD is failing to reignite the bullish momentum in the presence of a strong resistance zone, the risks are greatly skewed to the downside.
Due to a strong positive for the Aussie fundamental impact AUD/USD soared from yesterday's close and is currently testing the supply area created by the August low, weekly PP and the 20-day SMA.
EUR/JPY, being supported by the 55-day SMA and the monthly S1 level, remains on a bullish path and is about to breach the weekly PP at 141.47.
Yesterday USD/CHF touched upon an important resistance area at 0.9177/60, but subsequently quickly retreated from the 200-day SMA back to the monthly R1, indicating that this supply zone is rather strong.
USD/JPY continues to be largely inactive, trading just above the support at 104.09/00.
Despite some hesitation near the monthly pivot point at first, which led us to a belief that a rally is already coming to an end, GBP/USD managed to breach 1.6449/42, thereby exposing a key resistance at 1.6513/00.
As long as the resistance area at 1.3645/11 remains intact, the medium-term outlook for the currency pair will stay bearish.
NZD/USD has already pared most of its Friday's losses and is currently testing toughness of the monthly R1.
Despite toughness of the resistance zone formed by the highs seen in September of 2009 and, most importantly, by the 17-month up-trend line, USD/CAD still launched an attack on 1.1023/00.
Apparently, AUD/USD is not in a hurry to decline, as it remains contained by the August low from above and by the monthly S1 level from below.
Following a test of a formidable support zone at 140.15/03 EUR/JPY is now grinding higher.
Even though USD/CHF has successfully overcome the monthly R1 level, a fact that should have encouraged the bulls, the pair still has a hard time advancing north.
For the time being it appears as the monthly PP, in conjunction with the 2013 highs, managed to weather the selling pressure.
Although initially it looked as if the Cable wishes to rise back to the resistance at 1.6513/00, the monthly pivot point proved to be sufficient to negate the upward momentum.
EUR/USD continues to consolidate following a sharp decline—right now it is testing the monthly S1 level from below.
After violating the 15-day up-trend line NZD/USD found support at 0.8237/20, the area which is formed by the monthly pivot point and the 55-day SMA.
Even though some of the indicators on the daily chart are still in favour of further appreciation of the greenback, it appears that USD/CAD will be unable to overcome 1.10.