After the recent fundamental events and releases a broader review of the EUR/USD currency pair was conducted on Thursday. Namely, all previous patterns were deleted and a fresh look was taken at the situation to capture the new fundamental information.
It was discovered that the currency pair is trading in massive scale descending pattern, in which there exists a long term ascending channel. In the medium pattern a descent is taking place in a channel down pattern.
Meanwhile, note that recently the pair bounced into a strong resistance cluster, and it has almost no support down to the 1.1640 mark.
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The common European currency has extended its decline against the US Dollar even more than it as initially expected. Moreover, significant support levels were passed on Friday morning.
Namely, the support levels of the medium and large scale patterns was passed together with the weekly S1 near the 1.1640 mark.
Without this support the rate can fall as low as the 1.1580 level without finding any level of significance to pause the decline. Meanwhile, note that the 1.1580 level is mentioned because that is where a lower trend line of a speculated channel down pattern is located at.
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The narrow ascending pattern of the USD/JPY currency pair, which was drawn on Thursday, has held its ground, as the surge of the currency exchange rate has extended into Friday. Namely, on Friday morning the rate had reached above the 112.75 level.
The rate was expected to continue its surge in the future, as it faced no resistance as high as the 113.65 mark, where a historical high level was located at. In addition, the high level was supported by a pivot point at 113.75.
Meanwhile, note that the 55-hour SMA was approaching near the 112.00 mark to provide support.