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Overall, the dollar sold off against every other currency on Wednesday, as the majors posted strong gains. It should be noted that the currency market was able to sell off the dollar even though the S&P closed in the red and showed general weakness during the trading-day. This was among one of the first times in the last few periods when the majors were able to advance as much as they did today, without the S&P futures backing their moves.

The Euro (Eur/Usd) reached the highest value since January on Wednesday, after the pair was able to break above an important swing area. During the intra-day session, the euro started to move higher during the European session, gaining as much as 200 pips. However, the late U.S. session found the pair shedding some of those gains.

The Pound (Gbp/Usd) strengthened across the board on Wednesday, being the day’s top performer. Almost the entire upside move came during the U.S. session, having the pound surge 270 pips. According to the latest sentiment report among currency managers, the pound is seen as undervalued.

The Aussie (Aud/Usd) finished the last trading day, Wednesday, forming a large doji-star, suggesting the market’s indecision. During the intra-day session, the aussie lost ground during the late U.S. session, after it formed a double-top formation at TheLFB R1 (0.7800), During the Asian session, the pair traded side-ways.

The Cad (Usd/Cad) broke below the 1.1450 support level on Wednesday, and reached the lowest value since October 2008. The cad’s decline came as oil – the commodity that backs the Canadian dollar’s strength – broke another important price point, reaching $62 per barrel. Over the last month of trading, oil declined only in 6 days, while it advanced the rest of the period.

The Swissy (Usd/Chf) is trading near the 1.0970 support level, where the pair bottomed on Wednesday and in the previous week of trading. If it breaks below the support level, the swissy will create a new low for the last five months of trading. It should be noted that the swissy declined in the last few days even though the S&P was not able to hold in the green.

The Yen (Usd/Yen) declined over the last few trading sessions, as investors consider the Japanese yen as a safe heaven. The yen’s decline started on Wednesday morning, after a release showed that the Japanese economy contracted the most on record in the first quarter. During the Wednesday’s trading session, the yen lost 120 pips, while tonight it extended the declines by falling another 50 pips.

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