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Overall, the currency market reversed the gains seen in the Asian session through the European trading hours. The dollar’s upside move was rather strong, as the greenback moved against every other major currency, except for the yen. The dollar’s strength looks set to continue over the coming sessions, helped by S&P futures that look unable to break above the 945.00 resistance area. The light release calendar does not help the lack of volume in the currency market at the moment.

The Euro (Eur/Usd) is currently trading below the 20-day moving average, after the pair declined 90 pips during the overnight session. Most of the declines came during the European trading hours, as the dollar strengthened across the board. The euro economic calendar was light this morning, as it will be for the rest of the week; something that may influence the pair’s behavior. The Sentix report issued on Monday showed that sentiment among European consumers improved in June, but this had little effect in the currency market.

The Pound (Gbp/Usd) extended recent declines during the overnight, and followed the negative pattern of the last four days of trading. However, the pair declined less tonight than in previous days of trading when the pound was the worst performer among the major currencies. On the daily chart, the pound tested a trend-line that connects the Apr 28 09 and the May 18 09 lows, and at the same time connects the 20-day moving average.

The Aussie (Aud/Usd) had very thin momentum throughout the first part of the overnight session, but saw a lot of downside action shortly after the London open. The aussie lost nearly 150 pips during the European session, reversing a 50 pip gain seen earlier. On the daily chart, the pair just broke under the support trend-line that connects the Apr 28 09 and the May 18 09 lows.

The Cad (Usd/Cad) broke above a resistance trend-line that held the pair in place since late April. The cad gained 50 pips overnight as crude oil lost $1.40 per barrel, or almost 2%. Over the last few trading periods the Canadian dollar strengthened in-line with the gains seen in the commodity market, but now the currency is declining in-line with the raw materials prices dropping.

The Swissy (Usd/Chf) managed to break above the 20-day moving average and above the Friday’s high, as the dollar strengthened across the board during the overnight session. So far the swissy has risen 100 pips, totaling 270 pips gained over the last two days of trading. A report on Monday showed that the unemployment rate reached 3.5% in May in Switzerland, 1 basis point higher than a year ago.

The Yen (Usd/Yen) had a very modest European session, even though the rest of the major pairs experienced a substantial increase in momentum. The yen fell 40 pips at the Sunday opening bell, but since then the pair was unable to move much lower. On the daily chart the yen is trading above all of the important moving averages, but still under the 99.00 resistance area.

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