Due to current tranquillity in the market we should not expect the pair to breach any of the major levels or rewrite highs or lows in the nearest future.
As suspected, the currency pair was unable to hurriedly penetrate 0.9553/49, but instead returned down to 0.9488/68, gaining a foothold above the up-trend support line.
According to the technical indicators, we may expect a little more bearishness in the price before bulls fully recover from the recent downward correction and drive the exchange rate upwards in a longer time perspective, as suggested by weekly and monthly studies.
A support level at 1.5092/85 initiated a recovery yesterday that has postponed development of a dip.
Support at 1.2765/60 holds for now, but in the end is expected to give in to the bears, exposing 1.27, the current location of the Bollinger band and weekly S2, since the outlook on the pair is from neutral to negative.
The currency pair has been experiencing volatile trading sessions lately, rising up to 0.8408/05 and then falling back to the initial level at 0.8337/33.
While support at 1.0187/84 was crossed fairly easily, 1.0152/48 turned out to be of much greater importance to market participants, many of whom went long at the 55-day SMA and thus negated strong bearish impetus.
AUD/USD is adding to losses, breaching 1.0417 and then shortly challenging support area at 1.0404/1.0387, which is formed by the 100 and 200-day SMAs and the monthly R1.
Bearish sentiments of EUR/JPY are currently struggling with the interim support line at 120.12/09 that does not wish to open the door towards the 100-day SMA at 118.95 as it did a month ago.
An upside risk noted yesterday has proven to be well-justified, since we have witnessed a sharp rally from 0.9470/68 that did not respect an accelerated up-trend resistance line, piercing it effortlessly.
Violation of the rising support line has not yet introduced substantial changes into the price action, as USD/JPY remains largely flat, contained by 93.59, the 55-day SMA, from below and by 95, the up-trend resistance, from above.
The Cable carries on moving away from the formidable resistance area at 1.5221/1.5177, as selling pressure there disables bulls and thus prevents rallies.
After overcoming a short period of hesitation near 1.2815 the pair continued the decline and encountered 1.2774/65, which appears to be a stronger support line than the previous one.
A rebound from 0.8338/33 did not last for long, as NZD/USD has sharply dropped after a contact with 0.8393, the upper Bollinger band.
Yesterday USD/CAD subsequently broke through 1.0213, the former up-trend support line, and 1.0187/84, the monthly PP and weekly S1, signalling that if the recovery is to recommence, the bulls will require more time to remedy the situation and return the outlook back to positive.
Before AUD/USD could touch upon 1.0518, short-selling has settled in and pulled the price back down to 1.0417, revealing fragility of the current upward trend, as absence of serious resistances implies that later on the pair will find strong supports to uphold it to be missing.
A shallow bullish correction from 120.27/09, which followed penetration of a support line at 121.78, is now completely pared, as it seems that the pair is willing to lose even more ground in the near future, according to the daily technical indicators.
The situation here is somewhat reminiscent of what is happening with USD/JPY since February.
A recent fall of the currency pair, following a breach of an important bullish trend-line, did not extend yesterday, but was reversed by an interim support line at 93.98, calling into question whether bears will be able to take control of the price's direction in the longer term.
Yet another endeavour of bulls to throw the pair over a hurdle at 1.5221/1.5177 has proven to be unsuccessful, since the price is slowly pulling back after the test of the resistance area.
A rally beyond the falling resistance line did not turn out to be sustainable, failing to reach the next notable level at 1.3117/1.3096 and closing back under the 200-day SMA and the trend-line.
After confirming 0.8339/32 and using it as a springboard, the currency pair has recommenced adding to gains, continuing reduction of the gap between the spot price and 0.8408, the rising resistance line.
As noted previously, the risk of the break-down of the up-trend support has risen substantially recently, being that the bullish impetus appears to be exhausted.
AUD/USD remains bullish, effortlessly reaching 1.0491 today, as traders are discouraged to short the Aussie that is headed towards 1.0572/59 at an accelerate pace and without serious delays.