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Overall, the major currencies posted only small declines compared to the dollar during the Sunday session, even though the S&P futures and oil moved lower, something that should have strengthened the greenback. The dollar’s uptrend may continue during the European session, as the financial market remains in risk-aversion mode. For now, the major markets (including equities, commodities, futures and currencies) are holding near important swing points, which may have a crucial influence. As such, chances are that one of these points will give something that would then create a strong wave of orders in just a few moments in the currency market.
The Euro (Eur/Usd) advanced 30 pips and tested the 20-day moving average during the Sunday session. However, the pair bounced back from the moving average, and retraced every pip it gained earlier in the day. Today, the euro-area has a light calendar, but there area is number of important releases scheduled over the next few days.
The Pound (Gbp/Usd) is trading just above TheLFB S1 (1.6130), after the pair fell 40 pips during the Sunday session. At the same time, the pair broke below the range it developed on Friday during the second part of the day. In the near term, the pound is still likely to be outperformed by the other major currencies, as the U.K. economy is looking rather weak.
The Aussie (Aud/Usd) is struggling for four consecutive days to break below the 0.7780 area, but so far it seems to have failed. This area is a very important swing point for the aussie, since it represents the 23.6% retracement area of the uptrend that was started in March.
The Cad (Usd/Cad) made a shy attempt to break below Friday’s low during the Sunday session, but the pair’s lack of volume and momentum prevented the pair from breaking any important price point. Soon after, the cad started heading higher, and is now trading 30 pips above the opening price.
The Swissy (Usd/Chf) opened slightly below the 20-day moving average during the Asian session. However, this did not stop the pair from moving higher, and gaining 30 pips so far. The next major resistance seems to be the 1.0900 area, where the 50-day moving average is located.
The Yen (Usd/Yen) gained 50 pips throughout the first part of the Asian session, but then quickly moved back to the neutral pivot point (92.50). On the daily chart, the yen appears to be trading near the lowest value it has touched over the last few months of trading, and slightly above the support trend-line, that has held the pair since 03.30.
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