It seems that yet another try of USD/CAD to rise beyond 1.0701/1.0693 did not turn out to be successful—the price is moving away from 2010 highs en route to the up-trend line.
After a shallow rally due a test of the August low AUD/USD has once again returned to 0.8845.
The currency pair continues to struggle at 145.18/144.75 that consists of the long-term up-trend and the monthly R2 level, making it quite a difficult hurdle to surpass.
Although USD/CHF plunged more than 150 pips on Dec 27, it recovered most of the losses the same day and managed to settle above the monthly S2.
After five straight days of gains USD/JPY continues to rise, although we were expecting it to delay the rally in the presence of the resistance at 104.92/61.
As a result of the initial test of the monthly R1, the currency couple confirmed toughness of this level and returned back to the weekly PP.
Even though EUR/USD was able to breach 1.3720/08 and spike through the key down-trend resistance line for a brief moment on Friday, it failed to gain a solid foothold above 1.3831/28.
After four consecutive days of losses NZD/USD touched upon 0.8143/41, which triggered a short-squeeze that now may extend up to 0.8215/00.
While being underpinned by the rising support line, USD/CAD continues to grind higher.
Right now AUD/USD is trading just beneath the resistance at 0.8925/03, meaning a decline and then a test of the August low is the most probable course of events.
EUR/JPY has already pierced through some of the resistances and is currently testing 145.18/04 that mainly consists of the monthly R2 and the up-trend resistance line.
USD/CHF turned out to be unable to sustain the recovery—it has already dropped more than 50 pips today and appears to be willing to close beneath the support at 0.8930/21.
USD/JPY has just encountered the resistance at 105.20/104.92 and it is therefore set to decline in the near-term regardless of the bullish signals on the weekly and monthly charts.
Similarly to EUR/USD, the Cable ignored a notable level and it is now quickly approaching 1.6468/51.
Although EUR/USD was expected to move away from the dense resistance area at 1.3713/04 down to the 55-day SMA, the currency pair is currently trying to erode the nearest resistance.
"Higher U.S. bond yields could also destabilize risk assets, particularly those in emerging markets. That could prompt investors to buy safer currencies, including the dollar."- CNBCPair's OutlookBeing that 0.8215/00 did not manage to prevent further depreciation of the New Zealand Dollar, the rate is moving lower at an accelerated pace. The closest support is at 0.8144/43, but we would rather
For the time being the up-trend at 1.0609 copes with the selling pressure, meaning the currency pair may still launch yet another attack on the 2010 highs at 1.0701/1.0693.
"My view is that the dollar is still in an uptrend and is likely to rally further in 2014."- Marshall Gittler, IronFX (based on MarketWatch)Pair's OutlookGiven that the resistance at 0.8925/03 denied an attempt of AUD/USD to rise further, the bearish channel (in place since Oct 23) retains its topicality. Accordingly, this substantially increases the probability of a new low
"The fact that BOJ members are concerned that improvement in growth, jobs, and consumer prices may not be as robust as before signals they will take some kind of measures going forward."- Bank of Tokyo-Mitsubishi UFJ Ltd. (based on Bloomberg)Pair's OutlookAmong the nearest resistances, neither the weekly R1 at 143.12 nor the weekly R2 at 143.96/91 are expected to hinder
After hitting 0.8930/26 USD/CHF right now is slowly grinding towards 0.8976.
While the activity in most of the major currency pairs is currently sluggish, USD/JPY is quickly closing the gap between the spot and the resistance at 105.04/104.92.
Despite a high probability of a decline, the Cable managed to gain a toehold above 1.6348/43, which allowed it to challenge the January high.
The risks are presently heavily skewed to the downside, given that EUR/USD is trading just beneath the tough resistance.
NZD/USD has just eroded the support area at 0.8215/00, which consists of the important in the past highs and lows and the monthly PP.