And the EUR/USD takes off towards the 1.3700 level.

The US Dollar has been under pressure by most of its major counterparts, days before the Non-Farm Payrolls report, that is why we have seen the Euro gain ground versus the greenback and it is holding on to a strong bullish momentum. On the 4 hour chart below of the EUR/USD we can see how the price has come very close to the 1.3700 level, which could act as a good resistance zone. We must be attentive to a possible visit to that level, because it could give us a good bounce to the downside and a possible short entry. To the downside, the 200 period exponential moving average may act as a good support now that the price has broken above it.

Possible visit of the GBP/JPY to the 172.00 level.

The Yen has been strengthening for today versus most of its major counterparts after the better than expected fundamental releases out of Japan, which have shown that the Japanese economy is expanding at a higher pace than previously thought. This lowers the probability of the Bank of Japan implementing further economic stimulus for the time being. That is why we see on the daily chart below of the GBP/JPY that the pair has dropped and it is close to touching the 172.00 level. A visit of the pair to the zone of the 172.00 could give us a bounce to the upside from there or at least we may see it stall at that point. Besides this being a round number and psychological level, we also see that the 55 Daily EMA, purple line, is around that same zone and it could help provide further support to the pair around that zone.

The kiwi is very close to a key resistance level.

The New Zealand Dollar versus the US Dollar is very close to touching its latest high from last month around the 0.8779 level. We may probably see a bounce from that level to the downside or at least we may see the pair stalling its bullish momentum there. If the pair does indeed bounces to the downside, it may try to reach the 0.8700 level which could act as a good support zone. On the daily chart below of the NZD/USD we can see a red line at the 0.8845 level; that level is a historic high for the pair reached on august of 2011. Therefore, if the price continues going higher and visits that zone of the 0.8845 level, it may try to bounce back to the downside. 

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Volatility shrinks even more on the EUR/USD.

The volatility on the EUR/USD has dropped to historic levels during the last few days, due to the fact that there is no clear consensus on the future direction of the US economy and the European Central Bank is keeping its monetary policy unchanged. On the 4 hour chart below of the EUR/USD we can see that the pair keeps oscillating around the 1.3600 level and the range has shrink, forming what appears to be a symmetrical triangle with the 55 EMA as support and the 200 EMA as resistance.

On the symmetrical triangle formations price tends to breakout in the direction that the price was having coming into the pattern. However, it would be wiser to wait for the breakout and then the pullback before trying to open a position. Therefore, even though the volatility has dropped, we may get an opportunity to enter on this pair if we patiently wait for the breakout.

The USD/CAD nears the 55 EMA on the Weekly chart.

The US dollar had been weakening versus the Canadian dollar since last week and it looks like it will continue with its downtrend for this week. However, we must be careful with the current drop on the pair, because it is nearing the 55 Exponential Moving Average on the Weekly chart, just as we see it on the chart below. The 55 EMA may not be too dependable on the lower timeframes, but on the higher timeframes like the weekly chart, this EMA may act as a very good support or resistance level. Therefore, we must pay attention to a possible visit of the price to the 55 EMA on the Weekly chart, because we may see a bounce from that zone to the upside.

Breakout and pullback on the GBP/USD to the 1.7000 level.

The Pound versus the Dollar has be gaining a lot of ground lately and has reached a 5 and a half year high at the 1.7062. On the 4 hour chart below we can see that the 1.7000 level was acting as a good resistance for quite some time, but the pair finally broke it and reached the 1.7062 from where it started retracing today.

We can clearly see that a breakout and pullback pattern has formed and the 1.7000 could act as a support now. Therefore, a visit to the 1.7000 could make the price bounce back to the upside and give us a possible long entry. For this reason we must pay attention to that possible visit.