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Overall, the major pairs posted strong gains compared to the dollar on Monday, following closely the price action seen in the S&P futures. Right now, the dollar index seems to have resumed its downward path, after almost a year in which the greenback reigned in the currency market. The next important swing point for the currency pairs will be to break above the highs set in the previous week of trading.
The Euro (Eur/Usd) saw very weak volume on Monday, even though the rest of the major currencies posted very strong gains. The euro struggled during most of the overnight session to break above the Sunday open with the exception of the move made during the U.S. trading hours. At the end of the day, the euro gained only 70 pips, from which 20 were lost tonight.
The Pound (Gbp/Usd) gained 160 pips on Monday, the biggest gain among the major pairs. The pound started heading higher shortly after the London open and kept advancing until the late U.S. session, something that helped the pound reach the highest value since January. During the Asian session, the pound declined 30 pips.
The Aussie (Aud/Usd) saw very strong momentum during Monday’s trading session. The pair rose more than 200 pips from the low set during the Asian session to the U.S. close price. The pair’s main upside driver seems to be the commodity markets, which posted strong gains in the last few trading days, as the global economy is recovering.
The Cad (Usd/Cad) declined 140 pips in the last day of trading, on Monday, moving only lower from the late Asian session to the late U.S. trading hours. Moreover, the pair managed to break below the support trend-line that connects the 05.11 and the 5.13 lows, something that might further drag the dollar bears into the market.
The Swissy (Usd/Chf) traded most of the overnight session in a relative wide range, but eventually the swissy started to move lower. The downtrend was inline with the general market direction, but still the swissy posted only moderate declines as most investors considered the SNB might be preparing for another market intervention.
The Yen (Usd/Yen) formed a bullish engulfing pattern on Monday, when the pair rose 120 pips. Most of the gains came during the European and the U.S. sessions, after the yen declined during the early part of the overnight session. Tonight, the yen started the Asian session trading barely below the resistance line that connects the 03.19 and the 04.28 lows.
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