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Overall, the currency market had no clear direction throughout the Asian session. This was widely expected since investors are preparing for the RBA interest rate decision, which will most likely move the entire currency market. Ahead, the European calendar is loaded with important economic reports, something that will be reflected in the market’s momentum. If European equities manage to trade in the green and oil retraces some of its recent declines, the dollar index will probably sell off.

The Euro (Eur/Usd) lost a few pips throughout the first part of the overnight session on Tuesday, as it bounced from the 20-day moving average. Over the last few weeks of trading, the 20-day moving average acted as a major swing area for the euro, something that means that if the euro will break above it, the market will re-enter in a long mode. 

The Pound (Gbp/Usd) traded just above the neutral pivot point (1.6230) during the Asian session, without a clear direction. On Monday, the pound formed a bullish pin-bar formation, which is usually interpreted as a reversal point by some traders. 

The Aussie (Aud/Usd) traded in a 30-pip side-ways channel during the Asian session, as the market expects the RBA interest rate decision. So far, the Australian economy is the only major economy that has avoided a recession, which justifies the central bank’s 3% interest rate.  

The Cad (Usd/Cad) is struggling to break above the 1.1630 area for more than five days of trading, however, the pair has failed to sustain such a move until now. Interestingly enough, over the same period, crude oil tumbled at a strong pace, something that should have made it easier for the cad to break to the upside.

The Swissy (Usd/Chf) developed an important intra-day swing point, near the 1.0850 area over the last four days of trading as it failed to break decisively from this area. To the upside, the pair trades just below the 1.0900 resistance area, while the 20-day moving average is acting as support to the downside.

The Yen (Usd/Yen) fell 25 pips during the early Asian session, but the move was quickly reversed by the market. For now, the yen is trading close to the neutral pivot point (95.30), a few pips below the Asian open price. On the daily chart, the yen is trading above the 95.00 support area, which previously held the pair for almost a month. 

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