There is now only one significant obstacle left for USD/CHF to overcome in order to reach the resistance at 0.9250, which is formed by the monthly R1 and 2013 Nov 7 high.
Although most of the past week the U.S. Dollar was underperforming, in the end it managed to erase the prior losses and jump over the 2014 Q2 high once again.
Although the overall bias towards the Cable is bearish at the moment, the British Pound continues to recover.
The pair has finally arrived at 1.31 (2013 Sep low and weekly S1), a key to the last year's low at 1.2750 (also monthly S3).
At the beginning of the week, the New Zealand's Dollar fell near the major level at 0.83; however, now, on Friday, the pair has reversed almost all of the previous declines.
USD/CAD has declined significantly this week, as the pair has dropped around 150 pips lower from this week's high at 1.0998.
The Australian Dollar gained, after a sluggish performance at the beginning of the trading week.
If this week in general has not been good for the European currency, then at least today EUR/JPY managed to reverse some of this week's losses.
USD/CHF is presently struggling to gain a foothold above 0.9150, which in turn would allow the pair to target the 2013 Nov 7 high at 0.9250.
The currency pair is currently facing the support at 103.50, which is supposed to prevent further depreciation of the U.S. Dollar and then help it surpass the resistance at 104.
GBP/USD carries on consolidating just below the weekly PP at 1.66 before the sell-off is resumed.
EUR/USD continues to fluctuate within a tight range this week—between 1.32 and 1.3150.
After reaching the 0.83 level at the beginning of the week the pair has gained a bullish momentum and it approached the 0.84 level today.
The U.S. Dollar has lost its bullish momentum, which pushed the pair towards the 1.10 level at the beginning of this week.
The Aussie prolonged its recovery today by climbing above the 55 and 100-day SMAs at 0.9354/44, respectively.
EUR/JPY continues its downfall, as it fell below the weekly S1 at 136.90 today. Moreover, since the pair attacked the 138 level on 24th of August it has been on a constant decline.
Although most of the near-term indicators poaint North and the price has recently closed above the 2013 Q1 high, USD/CHF is currently retreating.
For the time being this week is bearish for the U.S. Dollar, as it has already given up 50 pips.
The Cable refuses to leave the vicinity of the weekly PP, which has already been confirmed as a resistance level.
Despite a plethora of ‘sell' signals on the daily and weekly charts, the Euro is currently recovering, as the support at 1.3150, represented by the monthly S2, proved to be quite strong.
This has been only the third time when NZD/USD has appreciated for two days in a row since the down-trend on 10th of July began.
Since the pair touched the 1.10 level on Monday the bears took over the control. Nevertheless, we think USD/CAD will not slide below the Bollinger Bands at 1.0877.
After falling below the 0.93 level on Monday the Aussie has been doing much better, as the currency approached the cluster of resistances (55 and 100-day SMA, weekly R1, monthly PP), that was mentioned yesterday.
The Europe's common currency continues to fall relative to the Japanese Yen, as of today the pair reached the weekly S1 at 136.90.