Despite the early reading, Gold managed to show a solid 392 green pips on the daily chart, suggesting that bullish momentum prevails, but the resistance cluster at 1,256.77/1,257.69 is most likely to limit upside potential due to the multiple tests that have failed at the area before.
Monday ended with the US Dollar edging lower against the Japanese Yen, paving its way towards the descending channel's lower border, rather than the upper.
"The dollar got some support last week from month-end buying and came off its lows, but overall its heaviness remains unchanged." – Daiwa Securities (based on Reuters) Pair's Outlook The British currency's performance yesterday fell in line with expectations, being that the Pound reconfirmed the down-trend and closed trade between 1.2490 and 1.2480. Another bearish development today is expected, this time
The daily chart displays that the pair has showed almost no movement whatsoever, shifting from a green to a red doji candle.
Since the FOMC decision on March 14 the Greenback has almost not moved against the Loonie, as on Monday the currency exchange rate remained above the 1.33 level.
During the first half of Monday's trading session the New Zealand Dollar slightly depreciated against the US Dollar, as the currency exchange rate was kept lower by a cluster of fresh resistance.
The Aussie continues to depreciate against the Greenback.
EUR/JPY started its trading session in the red zone, resulting in losses for the sixth consecutive day.
On Monday morning the yellow metal attempted to break above the 1,250 mark, as it faced resistance put up by the weekly PP at 1,249.67 and the 50.00% Fibonacci retracement level, which is located at the 1,248.96 mark.
During the early hours of Monday's trading session the common European currency scored slight gains against the US Dollar.
As was anticipated, the USD/JPY currency pair was unable to reclaim the 112.00 mark, resulting in a 53-pip loss on Friday
The Sterling received a boost from upbeat fundamental data on Friday, which allowed it to outperform the American Dollar and retest the six-month down-trend.
During the first half of Friday's trading session the New Zealand Dollar lost ground against the US Dollar, as the currency exchange rate finally picked a direction and passed a cluster of support.
By the middle of Friday's trading session the US Dollar traded almost flat against the Canadian Dollar, as the currency exchange rate was expecting the release of the Canadian GDP data.
Upbeat US fundamental data on Thursday allowed the American Dollar to take the upper hand and outperform the Aussie.
The hourly chart demonstrates that EUR/JPY has been trading in the ranging market for the third consecutive day.
On Friday the yellow metal began the day's trading session just above the 1,240 level.
The US Dollar successfully outperformed the Yen on Thursday, receiving a boost from a better-than-expected US GDP reading.
The British Pound found support in front of the 55 and 100-day SMAs yesterday, but was unable to fully breach the immediate resistance cluster.
During the early hours of Friday's trading session the common European currency found support against the Greenback in a combined support level, which is made up of the weekly S2 and 55-day SMA.
During the first half of Thursday's trading session the New Zealand Dollar traded against the US Dollar below the weekly pivot point, which is located at the 0.7039 level.
By the middle of Thursday's trading session the US Dollar traded below the 1.3350 mark against the Loonie, as the currency exchange rate had retreated during the previous trading session.
The recent AUD/USD rally was expected to be reversed, but given that the pair managed to breach the immediate resistance yesterday, another positive development could now take place.
On Wednesday, the European single currency erased all previous week's gains against the Yen, having closed under the 119.60 handle. A breach of this psychological support suggests the Euro could fall even deeper now.