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Overall, after a consolidation period going throughout the Asian session, the major currencies followed the S&P futures lower shortly after the London open. Later in the session, the S&P futures recovered almost all of the ground lost earlier in the day, with the currency market failing to follow suit. To some extent, it looks like the forex market is unable to follow the global markets higher, which would require dollar selling. This has been seen over the last few trading sessions, as the global equity markets set new highs, while the forex market continues to trade side-ways and the greenback goes from sold to bought once again. 

The euro (Eur/Usd) hung around the Asian open price during the overnight session, having no clear direction. However, it made a short attempt to break lower during the European session, but quickly retraced that move back. For now, the euro is once again trading near the Asian open price.

The pound (Gbp/Usd) fell to TheLFB R1 (1.6370) during the European session, but since then the pair has entered into a tight trading range where the 20 and the 50-day moving averages can also be found. This area has acted as strong support over the last few weeks of trading. During the European session, a report showed that consumer lending dropped to the lowest level on record in June, while mortgage approvals rose to the highest level in 14-months.

The aussie (Aud/Usd) traded in a 30-pip range during the Asian session, but tumbled 100 pips shortly after the London open. During the downtrend move, the pair broke below a trend-line that has held it since 2009.07.23. However, similar to the euro and the pound, it has run into an area filled with support, causing the pair to bottom.

The cad (Usd/Cad) surged 80 pips during the European session, to test TheLFB R1 (1.0890) and at the same time, the high reached during the U.S. trading hours. Today, the cad advanced only for the second day over the last two weeks, which denotes the pair’s strong downside momentum.

The swissy (Usd/Chf) traded in a 50-pip range during the overnight session, where it spent most of the time in the prior U.S. trading session. On the daily chart, the pair is trading just below the resistance area formed by the 20 and the 50-day moving averages.
 
The yen (Usd/Jpy) fell 60 pips during the first part of the overnight session, but then surged higher as it hit the resistance trend-line that connects the 2009.07.13 and the 2009.07.22 lows. For now, the yen is testing the 94.70 area, which has acted as an intra-day swing point over the last few trading sessions.

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