Overall, the major currencies advanced strongly against the dollar during the Asian session, extending the gains seen in the previous day of trading, on Tuesday, as it seems the global economy may be recovering. For now, the majors are approaching important swing areas with strong momentum backing their direction. If the dollar fails to hold its ground, the major pairs might set the base for some strong upside trends in the coming period. 

The Euro (Eur/Usd) helped by strong gains observed over the last few weeks of trading, the euro is approaching the 1.3730 area, very important resistance for the pair’s outlook. In tonight’s Asian session, the euro rose sharply, gaining almost 80 pips in no time, and extending the 70 pips gained in the previous day of trading. If the euro manages to break above the resistance area, it will touch the highest value since early January. 

The Pound (Gbp/Usd) appreciated the most on Tuesday, helped by positive news releases coming from the U.K. The pair finished the day gaining 150 pips, but during the European session, the pound rose almost 260 pips. On Wednesday, the market expects the BoE’s Inflation Report, which has the potential to influence the pair’s behavior substantially. 

The Aussie (Aud/Usd) rose 70 pips in the last day of trading, on Tuesday. The pair headed higher most of the time, but like some of the other majors, the pair retraced many of the gains observed previously during the U.S. open. During the Asian session, the aussie re-tested the 0.7700 area, where it topped on Monday.

The Cad (Usd/Cad) fell as much as 130 pips during the overnight trading hours, but gave back most of the ground during the U.S. session. The cad finished the last day of trading, on Tuesday, gaining less than 50 pips even though oil reached new highs as it approached the $60 benchmark. In the Asian session, the cad declined 40 pips.

The Swissy (Usd/Chf) is trading near the lowest value touched since January 9 as the dollar declined against the major currencies. The swissy lost 50 pips on Tuesday, even though it fell as much as 90 pips during the intra-day session. Tonight, during the Asian session, the swissy fell another 60 pips. 

The Yen (Usd/Yen) declined sharply for a third consecutive day on Tuesday, as the S&P futures traded in the red most of the day. The pair lost 100 pips during the European and the early U.S. sessions. In the Asian trading hours, the yen tested the 95.75 area, where the pair bottomed over the last few weeks of trading.