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Overall, the currency market bought the safety of the dollar throughout the Asian session. Without any exceptions, every major currency declined against the greenback near the Sunday open, retracing some parts of the gains seen at the end of the previous week of trading. In addition, the currency market lacked a solid direction over the course of the last few days of trading, something that will probably continue as investors start to question the global recovery theme.
The Euro (Eur/Usd) fell as much as 60 pips during the Asian session, which caused the pair to retrace almost all of the gains made on Friday. On the daily chart, the euro is trading just above the 20-day moving average, which was an important swing area over the last few days.
The Pound (Gbp/Usd) lost approximately 50 pips tonight, moving in-line with the other major pairs. The pound’s decline comes as the dollar moves higher against a wide-range of currencies, which usually denotes the market’s aversion towards risks.
The Aussie (Aud/Usd) fell 50 pips tonight, breaking already below TheLFB S1 (0.8035). This comes after it spent on Friday trading in a 40-pip side-ways channel, unable to break through any important price points. On the daily chart, the aussie is trading just above the 20-day moving average.
The Cad (Usd/Cad) is showing some clear signs of dollar strength tonight, following along with some of the other pairs as well. The cad advanced 50 pips since the open of the Sunday session, something that helped the pair break above the high created on Friday. Over the last few days of trading, the cad has swung around the 1.1540 area, unable to trend anywhere decisively.
The Swissy (Usd/Chf) gained 50-pips tonight, as it bounced off the 20-day moving average near the Sunday open. On the daily chart, the swissy trades in a very volatile area that will probably hold the pair in this area for a while.
The Yen (Usd/Yen) gained approximately 40 pips around the Sunday open, recovering half of the declines seen on Friday. Moreover, the pair is heading towards the 95.60 area, which seemed to have been a major swing point area over the last few days of trading.
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