www.TheLFB-Forex.com The Forex Trader Portal
Overall, the dollar found a lot of strength during the U.S. session, as the market was sent back into a risk aversion mode. This happened after Russia and Brazil announced that they plan to buy $20 billion issued by the IMF, to diversify from the U.S. dollar. Moreover, China, which is the biggest owner of U.S. debt, announced a similar measure in the previous week, something that puts under question the dollar’s future as a reserve currency.
The Euro (Eur/Usd) lost nearly 200 pips during the U.S. session, even though it gained 50 pips throughout the overnight trading session. With the current declines, the euro fell again down to the support area of the previous two days of trading, the 20-day moving average.
The Pound (Gbp/Usd) almost came to a standstill during the Asian session, but surged higher during the European trading hours. The pair gained nearly 170 pips, but still failed to break above TheLFB R1 (1.6455). Quickly after testing the pivot point, it started heading lower, shedding every pip gained overnight.
The Aussie (Aud/Usd) rose as much as 120 pips during the overnight session, where the pair topped near the 0.8120 resistance area. Since then, the pair has started to slowly reverse every gain made earlier in the day reaching Wednesday’s open price. Additionally, the pair seems to be forming a pin-bar pattern on the daily chart.
The Cad (Usd/Cad) spent most of the European session struggling to break below the 1.0980 area. The breakout came eventually, but it happened only for a short period because the cad soon reversed and started to test new highs. The cad’s uptrend started as oil failed to push the price action above the $70.80 area.
The Swissy (Usd/Chf) had a 20-pip range during the Asian session, but even so the pair tried a couple of times to break under the low set on Tuesday. The swissy moved lower eventually during the European session, but it still lacked the strength to break below the intra-day trend-line that connects the 06.05 and the 06.05 lows. During the U.S. session, the swissy gained 100 pips.
The Yen (Usd/Yen) gained almost 100-pips on Wednesday, as the dollar strengthened across the board. Except for a short period during the Asian session, the pair headed only higher. Additionally, the yen pared today, on Wednesday, the declines seen in the previous day of trading.
TeamLFB provides forex related market analysis and trade signals