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Overall, the market stalled during the European session, together with the S&P futures and with the European cash markets. This happened as investors prepare for a calendar ahead that is loaded with important economic reports, and with earnings reports coming from a long list of major companies. Until the calendar is clear in the U.S. session, the market will most likely not resume its trend, and continue trading in a range bound pattern.
The Euro (Eur/Usd) gained 60 pips during the Asian session, and even managed to break above TheLFB R1 (1.4255), helped by the London open, but soon afterwards, it retraced a large part of that move. The euro’s outlook lies to the upside, but for now, the pair simply lacks the necessary momentum to break above any important price points.
The Pound (Gbp/Usd) was the only pair that kept moving higher during the European session, even though the rest of the market entered in a side-ways channel. This comes after, the pound was sold off at a strong pace during the last two European sessions. Currently, the pound is trading just below TheLFB R1 (1.6540), and at the same time near the area where the pair has topped over the last few trading sessions, something that suggests the pound will need very strong momentum to move higher.
The Aussie (Aud/Usd) moved slowly higher during the Asian session, but the pair entered in a side-ways channel during the European session, as some of the other major pairs did. Over the last few trading sessions, the aussie lacked clear direction and moved most of the time up and down around the neutral pivot point, keeping the pair from breaking any important price points.
The Cad (Usd/Cad) made a shy attempt to test the 1.0950 support area ahead of the European session, but the pair’s momentum was so low that it did not even make it down to the support area. Soon after, the cad retraced every pip it had gained earlier. Later in the day, the BoC is expected to hold a press conference, in which they are expected to issue a bullish statement.
The Swissy (Usd/Chf) continues to trade within the range of the last few sessions of trading, as the pair lacks the necessary momentum to break anywhere. The pair moved lower during the first part of the overnight session, but shortly after the London open, the pair reversed, and gained 60 pips.
The Yen (Usd/Yen) rose approximately 90 pips during the overnight session, but much of these gains came during the Asian session. For now, the yen is trading slightly below the 20-day moving average, and near the 94.50 area, where it has also topped over the last few trading sessions.
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