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Overall, the dollar index lost a few basis points during the Asian and the European sessions, but so far, these declines have been contained. The major currencies are trying to push higher against the dollar, but most pairs failed to break above the swing areas of the last few trading sessions, something that contained the upside trend. The S&P futures held support during the European trading hours, which added further weight to the majors’ uptrend. Ahead, there is only one important release scheduled during the U.S. session, the New Home Sales, but traders will probably remain focused on the equity earnings results.
The Euro (Eur/Usd) is currently testing the 1.4250-14300 area, where the pair topped out over the course of the last week of trading. If the euro does manage to move higher, it will run straight into the high of the current year, in the 1.4340 area. During the European session, a release showed that German consumer climate reached the highest value in a little more than a year, something that probably contributed to the uptrend that the euro saw during the intra-day session.
The Pound (Gbp/Usd) tested the high and the low reached on Friday, but still the pair was unable to break anywhere and hold. During the overnight session, the pound tested the support trend-line that connects the Jul 13 09 and the Jul 22 09 lows, but so far, the pound failed to move lower.
The Aussie (Aud/Usd) headed higher most of the time during the overnight session, except for a small period during the Asian session of trade that allowed enough of a pull-back to question the ability to easily move forward. For now, the aussie is holding above TheLFB R2 (0.8225), and, at the same time, above the resistance area that held the pair over the previous week.
The Cad (Usd/Cad) tried to follow the rest of the major pairs during the overnight session, but the cad had only limited success due to the small momentum the pair regularly sees during the Asian and the European sessions. In addition, the cad is currently trading near to the low of the year, a very important swing area.
The Swissy (Usd/Chf) struggled to break and hold below the 1.0680 area during the overnight session. If the global markets remain trading in the green, the chances are that swissy will run a test at the 1.0650 and 1.0580 support area.
The Yen (Usd/Yen) continued to move side-ways during the Asian session, but then managed to surge higher during the European session. For now, the yen is once again approaching the 200-day moving average at 95.25, the same place where the pair topped over the last few trading sessions.
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