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Overall, the forex market lacked a clear direction during the Asian trading hours. In addition, over the last few days of trading, the currency market was unable to be consistent with a clear direction of trade, as investors moved in and out of risk-aversion from one session to the other. Ahead, the market is expected to have strong momentum, as the European session is loaded with important economic releases.
The Euro (Eur/Usd) gained 50 pips on Tuesday, even though the pair advanced as much as 150 pips during the intra-day session. During tonight’s Asian trading hours, the euro traded side-ways, in a relative small range. On the daily chart, the euro appears to be forming a head and shoulder formation, with the neckline around the 1.3800 area, just above the Wednesday’s open.
The Pound (Gbp/Usd) fell to the neutral pivot point (1.6365) during the Asian session, extending the downside action seen during the late U.S. trading hours. With the declines posted throughout the Asian session, the pound shed half of the gains seen during Tuesday’s European session, when the pair advanced 300 pips.
The Aussie (Aud/Usd) formed a large doji-star on Tuesday, a sign of indecision, after the pair was unable to break and hold decisively any important price points. In the first part of the day, the aussie declined 100 pips, but reversed every pip lost earlier and then advanced another 130 pips during the European session. However, the aussie moved lower throughout the U.S. session, to close the day posting a 20-pip loss.
The Cad (Usd/Cad) tested briefly the 1.3670 area during the Asian session, but so far, the pair has been unable to break any higher. Moreover, the cad also failed to break this resistance area in the previous two days of trading, on Monday and Tuesday, even though crude oil lost important ground in this period.
The Swissy (Usd/Chf) had a 20-pip range during the Asian trading hours, similar to the previous session, throughout the late U.S. session. On Tuesday, the swissy traded in a range, bordered by two important swing areas; the 20-day moving average on the downside, while on the upside the 1.0950 area has acted as a resistance for almost a month.
The Yen (Usd/Yen) declined 50 pips during the Asian session, breaking below the low set on Tuesday. However, the pair hit a critical price point around the 96.00 area, and jumped very quickly back near Wednesday’s open. On the daily chart, the yen trades at the resistance area formed by the 20,100 and the 200-day moving averages.
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