Pair is undergoing bearish correction which was mainly caused by the impetus coming from the Fibo 23.6% (January to march, 2013, sell off).
As anticipated pair is showing signs of bearish correction.
While the resistance at 0.7855 (monthly PP) was unable to contain yesterday's bullishness of NZD/USD, a combination of 0.7919 and 0.7981/67 stopped the New Zealand Dollar from appreciating any further.
"The dollar's latest rally was started by nothing other than Bernanke's comments last month (that the Fed could reduce stimulus.) Few people would have thought he would suddenly turn dovish."- a trader at a Japanese bank (based on Reuters)Pair's OutlookUSD/CAD took a massive hit yesterday, plummeting under the level we considered to be more or less safe. The decline extended
"Given that both the Aussie and kiwi have been weighed on heavily by expectations of the Fed tapering its bond purchases, both are benefiting now."- Deutsche Bank AG (based on Bloomberg)Pair's OutlookAfter successfully breaching the line at 0.9184 the currency pair returns back to the 20-day SMA and weekly R1. If the former support limits the on-going dip, we are
Yesterday EUR/JPY fell beneath the support 129.14/128.30 and approached the rising support line at 127.41/37, demand around which did not allow any further sell-off, sending the price back to the 55-day SMA at 129.91.
Pair has seen a strong reversal from the 2013 low at 1.482 and at the moment is being stopped by the 20-day SMA.
Weekly R1 at 0.973 caused pairs 300 pip failure.
Weekly PP failed to provide strong enough of a support for the pair.
Pair received a strong bullish impetus from the 2013 low at 1.274, rallied by 350 pips and at the moment is trading at the 200-day SMA.
It does not seem anymore that NZD/USD will be capped by the down-trend resistance line drawn through the highs since May 13, as it has settled above 0.7809/0.7785 and is already attempting to rally further.
The currency pair has taken yet another step towards 1.0447, which are now separated by mere 50 pips.
AUD/USD continues to grind upwards regardless of the ‘sell' signals given by three out of eight technical indicators.
An endeavour of EUR/JPY to surge beyond the resistance at 129.91, a combination of the weekly PP and 55-day SMA, seems to have failed, as it plummeted down to the lower edge of the wide but nevertheless dense support area that stretches from 129.00 to 128.22.
Pair did not manage to advance above the 1.29 mar, received bearish impetus from it.
Pair did not manage to consolidate above the 101 and it might be that we wont see it testing 103.7 soon.
Pair bounced from the 2013 low yesterday, but did not manage to gain momentum and breach 1.50
Pair's recovery has been previously interrupted by the monthly R1 at 0.967.
Just as on Jun 13, NZD/USD ballooned through the bearish resistance line and has already reached the monthly pivot point level at 0.7855.
Right now we see even more bullishness in the technical indicators on daily and monthly charts than yesterday, but USD/CAD refuses to follow the signals and is closing in on the 1.0496 that is a fraction higher than the key support at 1.0466/47.
Despite the currency couple closing above 0.9110 and approaching 0.9216/0.9184, the daily technical indicators have become slightly more bearish than before on a daily time-frame.
Following a confirmation of the support at 129.93/91 yesterday, EUR/JPY again displays the tendency to move higher.
Pair's recovery has been interrupted by the monthly R1 at 0.867.
Pair started the week above 101 JPY and is staying there.