Currency Pair Overview European Session Lacks A Clear Direction

 @ibtimes
on June 25 2009 4:53 AM

www.TheLFB-Forex.com The Forex Trader PortalOverall, the currency market has lacked a clear direction since the Thursday open. The only exception was the pound, which declined at a strong pace throughout the European trading hours, aided by drops in the Japanese yen. Moreover, the market’s failure to find a direction or a trend was observed over the last few weeks of trading, as investors remain uncertain about the future economic outlook and swing between risk-aversion and tolerance. The Euro (Eur/Usd) saw a 40-pip range during the overnight session, failing to move anywhere decisively. Moreover, the euro did not have any important price reaction, not even when S&P futures were going up and down around the 900.00 level. On the daily chart, the euro trades just below the 20-day moving average. The Pound (Gbp/Usd) spent the first part of the overnight session in a 25-pip range below the neutral pivot point (1.6460), but the pound started tumbling lower during the London open. The pair fell as low as TheLFB R1 (1.6320) and near the 20-day moving average, down almost 100 pips from Thursday’s open. Yesterday, the pound formed a bearish pin-bar formation, which usually is interpreted as a reversal sign.  The Aussie (Aud/Usd) gained a relative quick 40 pips, up to the 0.8000 level in the Asian session, but then the pair started hesitating around that area. The aussie was unable to move anywhere decisively until after the London open, when it broke below the 25-pip range seen overnight. Yesterday, the aussie formed a bearish pin-bar formation.The Cad (Usd/Cad) is still struggling to find a direction to trade in, after it failed over the last two days to hold a pattern. During the overnight session, the cad had a 50 pip range, but the pair failed to do anything else than swing around the 50-day moving average. The cad is clear of any important releases for the rest of the week. The Swissy (Usd/Chf) followed closely the euro throughout the overnight session, as the swissy lacked any important regional news. The pair lost approximately 50 pips overnight, testing the 1.0915 area, but then started again to head higher. Yesterday, the swissy closed the day 300 pips higher after market watchers claimed that the SNB intervened in the currency market. The Yen (Usd/Yen) gained 80 pips during the overnight session, strengthening for a second consecutive day. Moreover, the yen broke above the 200-day moving average, something that denotes the pair’s strength. The next major resistance the pair will meet is around the 96.90 area.TeamLFB provides forex related market analysis and trade signals

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