www.TheLFB-Forex.com The Forex Trader Portal

Overall, the currency market extended the dollar’s uptrend during the Asian session, as expected. The negative spot Asian markets made sure that the major pairs remained in risk-aversion mode, something that further strengthened the yen and the dollar. Despite this, the cad managed to strengthen compared to the two “safety currencies,” the dollar and the yen. Now, the cad’s move looks rather driven by a technical bounce. Ahead, the open of the two major cash markets, the Dax and the FTSE, is expected to set the tone of trading during the European session, as it has always been the case. 

The Euro (Eur/Usd) remained trading in a risk-aversion mode during the Asian session, extending the declines seen on Tuesday. On the daily chart, the euro is trading just above the support trend-line that connects the 06.16 and the 07.06 lows, an area that may hold the pair for some time.  

The Pound (Gbp/Usd) sold off at a strong pace over the last few trading sessions, as it seems the U.K. economy may be affected stronger than expected by the credit crisis. As such, the pair tumbled 150 pips on Tuesday and another 60 pips during the Asian session. 

The Aussie (Aud/Usd) started a strong downtrend on Tuesday, during the U.S. open, which made the pair decline approximately 180 pips. About 30 pips came tonight during the Asian session, as the pair was heading towards the 50-day moving average. 

The Cad (Usd/Cad) managed to close above the 1.1630 resistance area on Tuesday, but even so, the pair declined 40 pips during the Asian session to re-test the previous resistance. Over the last few days of trading, the 1.1630 area acted as a major swing point, one that held the pair for 5 consecutive days. 

The Swissy (Usd/Chf) is trading just a few pips below the 50-day moving average, helped by the gains posted on Tuesday and tonight, during the Asian session. It was late April when the pair last touched the 50-day moving average, something that suggests the swissy will need strong momentum to break higher. 

The Yen (Usd/Yen) fell 30-pips during the Asian session, declining to the lowest value the pair has touched since early June. A stronger Japanese yen is a huge drag on the Japanese economy, but the central bank has its hands tied as long as the market remains in a risk-aversion mode. 

TeamLFB provides forex related market analysis and trade signals