Although the US Dollar came under a strong selling pressure after hitting the resistance at 121, the currency has not yet fallen beneath 120.
Having established a solid support at 1.55 last week, the Cable is currently moving towards 1.5650.
On December 26, the EUR/USD currency pair developed in a very calm environment during the whole trading session.
NZD/USD is currently testing the down-trend at 0.7760/50, which is supposed to guide the pair beneath 0.77 and towards the 2014 low at 0.76.
For the time being USD/CAD is inactive, but once the volatility comes back, the US Dollar will likely decline.
Although at first the bulls seemed to be giving up their positions near 0.81 without a proper fight, there start to appear signs the Aussie may actually recover in the next few weeks before violating the 2010 low.
Although according to a majority of the weekly and monthly technical indicators the Euro is going to outperform the Yen, the 20-day SMA still remains intact.
Since the supply at 121 (weekly and monthly R1 levels) withstood USD/JPY's recent attack, the currency pair is vulnerable to a sell-off down to 118.
In the end the monthly S1 managed to push the Cable away from 1.55.
EUR/USD cross was little changed because of holidays on Wednesday, when the trading volume was rather low.
The New Zealand Dollar is currently following a well-defined down-trend that connects all of the highs posted since Nov 16.
Despite the persistence and energy the bulls have recently demonstrated by bringing USD/CAD from 1.135 to 1.167 in seven days, there is likely to be a retracement in the next few weeks.
AUD/USD continues to consolidate near 0.81 following an initial test of this level earlier in December.
As EUR/JPY did not settle beneath 146 but quickly rebounded from 145, the short-term outlook towards the pair remains positive.
Gold was almost completely unchanged during the trading day on Tuesday.
As it turned out, the supply at 120 did not manage to stop the advancement of the US Dollar.
Having taken the support at 1.56 out of the way, GBP/USD is currently putting a lot of pressure on 1.55, which in turn does not appear to be an easy target.
Yesterday, the EUR/USD currency pair dropped considerably and managed to set a new yearly minimum in the very end of December.
NZD/USD is still trading above the 0.77 level and it is likely to stay there in a foreseeable future.
USD/CAD continues to challenge the up-trend's resistance and monthly R2 that are located at 1.1635.
The Aussie dropped to the lowest level in more than four years today, as it dipped below the 0.81 mark.
The EUR/JPY cross has been trading almost completely flat today, as it is still sitting near the weekly PP at 146.47.
On Monday, the bullion declined in price considerably, losing around $25 per ounce to reach the weekly S1 at $1,177.
USD/JPY has breached the psychological level at 120 and it has a potential to trade even slightly higher.