www.TheLFB-Forex.com The Forex Trader Portal
Overall, the currency market traded almost flat during the Asian session, but re-entered in risk aversion mode during the European session. The dollar was able to strengthen compared to the major currencies even while the European markets traded in the green. The U.S. futures traded flat throughout the European session. Ahead, the market is expected to trade on strong momentum during the U.S. open, but then slowly fade away as the market is heading towards the close of the U.S. session, and towards the close of the week in which the major pairs failed to break any important swing points.
The Euro (Eur/Usd) struggled most of the overnight session to break below the support trend-line that connects 06.16 and the 06.18 lows. The breakout came during the European trading hours, as the euro dragged lower the other major currencies as well. On the daily chart, the euro continues to trade below the 20-day moving average.
The Pound (Gbp/Usd) had an overnight range of about 50 pips, but in reality, the pair was unable to break anywhere. On the daily chart, the pound is trading in a descending triangle with the resistance trend-line connecting the 6.11 and the 6.17 highs.
The Aussie (Aud/Usd) bounced off the neutral pivot point (0.7990) during the early Asian session, and rose 70 pips, which makes the aussie the pair that advanced the most against the dollar during the overnight session. Moreover, the aussie was the only pair that strengthened against the dollar on Thursday, something that shows again the strength of the Australian currency.
The Cad (Usd/Cad) is again trading around the 1.1300 area, which acted as an important swing point this week. Moreover, in all of this period the cad was unable to trade decisively in a direction as it formed three consecutive doji-stars on the daily chart, a pattern that usually denotes the market’s indecision.
The Swissy (Usd/Chf) had no clear direction during the first part of the overnight session, as the pair moved in a 30-pip range, but then surged higher in line with the euro. On the daily chart, the swissy is trading near the 23.6% retracement area of the downtrend that has lasted since late April.
The Yen (Usd/Yen) traded in a 20-pip range around the Thursday’s high during the Asian session, but surged up to TheLFB R1 (96.95) during the European trading hours. For now, the yen is trading in a very volatile zone, as a number of important moving averages meet in the same area.
TeamLFB provides forex related market analysis and trade signals