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The Pound Sterling has been trading in a long-term channel up against the Canadian Dollar since September, 2017. During this rally, Sterling reached a new high at 1.7659.

The currency exchange rate has breached a resistance cluster set by the monthly pivot points and the 55– and 100– hour SMAs, as it can be observed in the chart.

The GBP/CAD pair is likely to continue moving north to re-test the high at 1.7659. Traders should look for opportunities to trade long, as technical indicators suggest the rally could continue.

The large-scale situation for the common European currency against the New Zealand Dollar has not changed. However, there has been a new development, as the pair has formed a junior pattern south.

This new junior pattern has guided the currency pair down for a breakout of the lower boundary of the dominant channel at 1.6864.

Although the pair is currently stranded between SMAs, but two scenarios are possible. First, the EUR/NZD pair could move past the support of the 200– hour SMA. This decline might be stopped by a support cluster near 1.6805. Second, the exchange rate might reverse to test the upper boundary of the junior pattern.

Despite a brief attempt to appreciate against the Japanese Yen on Wednesday morning, the Greenback continued to be driven by downside risks for the second consecutive session. By Thursday morning, this bearish momentum had resulted in the pair reaching a new 2016/2017 low of 106.50.

If looking at the chart, some southern potential down to the 106.00 mark is still apparent—a level where the bottom boundaries of two prevailing descending channels are located. In terms of pivot points, the nearest support is provided by the weekly S3 at 105.56.

Following such a steep two-day decline, the US Dollar should start recovering in the nearest time. Even if the bearish sentiment prevails today, the expected advance is expected to happen on Friday.

After hitting the weekly PP at 1.3915 on Wednesday morning, the Pound began edging lower and eventually breached the support of the 55– and 100-hour SMAs.

Similarly to other major currencies against the Greenback, the Sterling initially fell in the wake of solid US CPI data, but was subsequently driven by strong upside momentum within the following hours. As a result, the pair managed to advance up to the psychological 1.40 mark.

Technical indicators support a possible fall in this session which is likely to be limited by the support of the 200-, 55– and 100-hour SMAs and the weekly PP circa 1.39.

Meanwhile, in case no fundamentals affect the rate in this session, the daily high is expected to be the weekly R1 at 1.4065.

The Euro failed to move above its weekly high of 1.24 on Wednesday, as it reversed from the bottom boundary of the three-week channel down.

Later on, better-than-expected US inflation data strenghened the Dollar, thus allowing for a breakout of the 55– and 200-hour SMAs. This hourly plunge was stopped by the weekly PP and the 100-hour SMA near 1.23. The subsequent surge of the pair was caused risk-averse investors who re-took their positions on Wall Street. The rate advanced even further up to the 1.2450 mark.

Meanwhile, the Asian session was spent calmly due to a Chinese bank holiday. The rate might edge slightly higher today, as no immediate resistance is apparent. However, the general movement should be south, as bears might want to re-gain some lost positions after the strong surge.

The EUR/USD currency pair hammered through the floor on Wednesday, as the report showed that the US consumer prices rose more than anticipated in January. The Greenback gained against the Euro 61 base points or 0.49%, but then the exchange rate rebounded significantly.

The release showed that the US Consumer Price Index surged 0.5% over the course of January, beating forecasts for only a 0.3% rise. Projections for further price pressure strengthened as well as the Fed is largely expected to raise interest rates again in December. The separate report showed that retail sales in the United States marked an unexpected decline of 0.3%, following a downwardly revised December's figure.

The Australian dollar extends strong rebound from 0.7758 (09 Feb correction low) to crack 20SMA at 0.7959 and expose key barriers at 0.80 zone (psychological resistance / Fibo 61.8% of 0.8135/0.7758 pullback.

The Aussie regained ground quickly after dip to 0.7773 after stronger than expected US inflation as the greenback came under renewed pressure shortly after data release on buy the rumor sell the fact scenario.

Daily techs are nearly at full bullish setup but lacking momentum, which could result in hesitation ahead of 0.80 pivots.

Broken Fibo 38.2% barrier at 0.7902 is now reverted to solid support which should keep the downside protected, guarding pivotal 10SMA support at 0.7871.

Eventual break above 0.80 will be strong bullish signal for extension of recovery from 0.7758 which is underpinned by rising and thickening daily / weekly Ichimoku clouds.

Res: 0.7959, 0.7991, 0.8000, 0.8046
Sup: 0.7947, 0.7902, 0.7871, 0.7814

NZDUSD (0.7376): The New Zealand dollar posted a strong recovery yesterday as price managed to rise back to a one week high. However, further gains can be expected only a close above the previous highs near 0.7408. There is a possibility that this level could be tested but we expect that NZDUSD could reverse in the short term. Support at 0.7333 is likely to be tested to the downside. The fact that a retest of the lower support level at 0.7160 is still pending could remain as the downside risk.

GBPUSD (1.4011): The British pound maintained gains with price rising to a four-day high as the GBPUSD managed to recover back to the previously established range. The resistance level at 1.4037 is likely to be tested once again in the near term. Further gains can be expected only on a strong close above the resistance level. Meanwhile, as long as the resistance holds, the GBPUSD could be seen maintaining a sideways range within the levels mentioned

EURUSD (1.2459): The EURUSD was seen posting strong gains yesterday as the common currency maintained gains for three consecutive sessions. Price action recovered back to the 1.2450 handle as it breached the resistance level of 1.2363 - 1.2333 region. However, a follow through is required for the currency pair to maintain the upside trend. Near term dips towards 1.2363 could see support being established which could signal the upside bias. In the event that EURUSD breaks below this level once again, we expect the declines to resume.