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Overall, the forex market moved very slowly during the Asian session, but things could pick up from here, after the Governor of the RBA said that the Australian economy might recover faster than expected on the short-term. This has already caused a spike in aussie’s momentum and helped the other major pairs gain a few pips. At this point, it is too early to tell if this trend can continue after the London open. Still, the major pairs are currently trading near important swing points, waiting for a catalyst to test the highs or the lows reached at the beginning of June.
The euro (Eur/Usd) saw a 20-pip range during the Asian session, having probably one of the weakest sessions over the last few weeks. For now, the euro is trading above the 1.4180 area, which could act as a strong support area if the market decides to sell the single-currency.
The pound (Gbp/Usd) lost a few pips during the Asian session, but so far, the declines have been contained. Over the last four days of trading, the pound was unable to move anywhere decisively, during a time in which the pair traded side-ways slightly above the 20-day moving average.
The aussie (Aud/Usd) saw weak momentum during the early Asian session, but soon after the pair surged nearly 40 pips as Governor Glenn Stevens spoke about the state of the Australian economy. On the daily chart, the aussie has already managed to break above the range of the prior week, something that the pound and the euro are still struggling to achieve.
The cad (Usd/Cad) continues to trade near the 1.0800 area, the lowest value the pair has touched in more than a year. As a note, the cad was the only major pair that was able to develop and sustain a trend over the last few days of trading, while the other major pairs have traded side-ways.
The swissy (Usd/Chf) moved very little during the Asian session, similar to how the whole currency market has behaved. On the daily chart, the swissy is trading near the 1.0700 swing area, trying to find a direction to trade.. If the pair moves lower, the swissy will need to break below the next major level of support, the 1.0650 area.
The yen (Usd/Jpy) bounced off the 200-day moving average again, falling 30 pips during the Asian session. The pair is struggling to break above this strong resistance area, as it has attempted to break through it for several months now.
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