As described before the break out of a triangle on the USD/CAD pair was stopped and a surge began on Friday.
The Australian Dollar is declining as expected against the US Dollar. However, there are new pieces of information to be analysed.
The EUR/JPY met the goals set on Friday. However, the surge of the Euro against the Japanese Yen went further than previously expected. During the surge the watched junior channel down pattern's resistance line was broken.
During the last trading session the exchange rate expectedly tried to break through the upper boundary of a senior descending channel.
An absence of any significant news in first half of the previous trading session expectedly led to a rebound from support zone located near the 112.10 mark.
Due to existence of a strong selling pressure in the area between 1.3440 and 1.3450 marks, the cable could not climb higher and was forced to make a rebound.
Due to bearish pressure exercised by the 55-, 100- and 200-hour SMAs the currency exchange rate ended previous trading session below the 38.2% Fibonacci retracement level at 1.1760.
Initially Thursday's forecast for the Kiwi against the US Dollar continued on, as forecast. However, something strange occurred after the initial move was complete.
The USD/CAD forecast was precise. The pair broke out of the developed triangle down pattern to the downside. Moreover, the breakout has revealed additional patterns
As it was expected the AUD/USD pair surged eventually up to the 0.7690 level, where it was met by one of the weekly resistance levels.
After the initial jump and writing of the previous analysis of the EUR/JPY currency pair, the forecast failed pretty fast.
Even though the US House and Senate came to agreement on tax reform while the Census Bureau showed an increase in the Core Retail Sales, the exchange rate did not even pass the 1,250.00 mark.
Because of release of better than anticipated information on the American Core Retail Sales as well as the pressure from 55-, 100- and 200-hour SMAs, the currency rate broke through support zone located between the 112.70 and 112.62 marks.
In result of the previous trading session the currency exchange rate made a breakout from the rising wedge formation.
Due to dovish comments made by the ECB as well as publication of better than expected result on the American Core Retail Sales, the currency rate managed to break combined support level formed by the weekly and monthly PP as well as three other moving averages.
The New Zealand Dollar has been a long time trading in a narrow channel up pattern against the US Dollar. However that is about to change.
During the first half of Thursday's trading session the US Dollar confirmed the location of a previously speculated support line against the Canadian Dollar.
On Thursday the full breaking and ignoring of the previous long term and short term patterns on the AUD/USD could be observed. However, the breaking of those patterns could be expected.
On Thursday the markets were expecting the ECB rate decision. As the announcement came, the EUR/JPY currency exchange rate surged and broke the resistance line.
After forming an inverse head and shoulders pattern and bouncing off from the weekly S2 at 1,235.93 the yellow metal managed to advance by 1.23% against the buck.
Due to interest rate hike by the Federal Reserve, the currency exchange rate got a downside momentum, which lasted until the pair reached the last combined support level formed by the weekly S1 and the 50% Fibonacci retracement level at 112.45.
Despite the pressure from three moving averages as well as from other technical indicators, the pair ended the day near the 1.3420 mark.
As the currency rate was falling the last three weeks in a row, traders used the Federal Funds Rate hike to sell the Dollar and elevate the pair to the 1.1844 level.
The New Zealand Dollar has been appreciating gradually against the US Dollar during the past two trading sessions.