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Overall, the majors retraced some parts of the gains seen over the last few trading sessions, but right now, the major pairs are sitting near important swing areas, which could act as important support as the pairs try to move higher against the dollar. In order to move higher, the major currencies will require strong momentum since the S&P futures and crude oil moved lower overnight, which is usually interpreted as dollar positive. Ahead, the European calendar is relatively light, but investors will probably focus on the BoC interest rate decision, scheduled during the U.S. trading hours. 

The Euro (Eur/Usd) bounced from the 1.4240 area, an intra-day resistance area, just ahead of the opening bell, causing the pair to retrace 35 pips of the uptrend seen in the previous day, on Monday. On the daily chart, the euro is trading slightly above the 1.4170 area, which may act as a strong support during the day. 

The Pound (Gbp/Usd) declined sharply throughout the Asian session, reflecting the weakness of the major currencies compared to the dollar. Ahead, the pound’s target may be the 1.6600 area, which holds the pair for almost 8 months. The UK has a light calendar today going into the European session.

The Aussie (Aud/Usd) fell 40 pips during the Asian session, down to the neutral pivot point (0.8120), and, at the same time, down to the support trend-line that connects the 2009.06.03 and the 2009.06.11 highs. During the Asian session, the RBA minutes have shown that the demand side of the economy is still more resilient than expected, and that the recent rate cuts s need time to reach the economy.

The Cad (Usd/Cad) is moving again on very light volume during the Asian session, something that has lately happened more often and often. Most likely, the cad will start moving on stronger momentum only after the BoC announces their new monetary policy, around 9am EDT.

The Swissy (Usd/Chf) rose 25 pips to test the resistance area of the side-ways channel seen throughout the European and the U.S. sessions, during the Asian trading hours. On the daily chart, the swissy is trading just below a very important swing point, which holds the pair since early June. 

The Yen (Usd/Yen) fell 40 pips, falling back into the range seen during the last few days of trading. On Monday, the yen formed a pin-bar, after it bounced from the 20-day moving average, something that is usually interpreted as a reversal sign. 

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