Overall, the dollar found the strength to reverse earlier declines in the European session. After a very active Asian session, the market increased in volume and momentum as the European session progressed. This happened despite the economic calendar being clear, Now, traders will switch their focus to the U.S. open and the equity markets.
The Euro (Eur/Usd) managed to break above the 20-day moving average into the Asian session, but could not hold on to its gains after the London open. The euro retraced almost half of the gains made earlier in the European session, falling 90 pips from the session’s high.
The Pound (Gbp/Usd) saw some strong gains in the Asian session, nearly 200 pips, but ran into the 50-day moving average and had to give some pips back during the European session. In the last period, the 50-day moving average acted as an important swing point.
The Aussie (Aud/Usd) broke briefly above the 20-day moving average in the early part of the European session. However, the pair lost ground as the session progressed, falling nearly 40 pips from its high. The 20-day moving average has acted as a resistance line for almost five days.
The Cad (Usd/Cad) fell nearly 150 pips during the Asian session, but bounced back from the 20-day moving average. During the European session, the pair retraced almost 100 pips, producing a long downside wick. This is the fourth day the cad is heading lower.
The Swissy (Usd/Chf) rose a few pips in the European session, after it tried twice to break below Friday’s low. The swissy earlier broke below the 100-day moving average, but did not manage to hold, similar to what happened in the last day of trading.
The Yen (Usd/Yen) surged higher during the European trading hours. The pair gained 90 pips in a relatively small time-frame, helped by the gains seen in the S&P futures. Earlier, during the Asian session, the yen tumbled 50 pips.