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Overall, the dollar index managed to advance a few basis points during the U.S. session, after it was sold off over the last few days of trading. For now, the major currencies are sitting at multi-month highs and at the same time near important swing areas, which may help the dollar retrace some parts of the recent declines.
The Euro (Eur/Usd) advanced 90 pips during the overnight session, but the pair was unable to break above the resistance area formed by TheLFB R1 (1.4240) and by an older swing point. On the daily chart, the euro appears to have formed a pin-bar pattern, which usually denotes a swing in trend.
The Pound (Gbp/Usd) rose nearly 240 pips on Monday, being the day’s top gainer. The pound was propelled higher after a release showed last week that house prices increased unexpectedly in May, while on Monday a release pointed out that the manufacturing side of the economy is doing much better than previously thought.
The Aussie (Aud/Usd) reached the highest value since September on Monday, as the pair gained 90 pips. The aussie gained momentum on Monday, as the market anticipated that the RBA will keep interest rates on hold at 3.00%, the highest among the major currencies, with Governor Glenn Stevens providing bullish statements.
The Cad (Usd/Cad) formed a pattern that looks like a pin-bar on the daily chart. The cad lost 150 pips during the overnight session, on very light volume, but in the second part of the European session, the cad started to move higher. At the end of the day, the cad retraced every pip gained in the early trading session. Usually, pin-bars denote a swing in trend.
The Swissy (Usd/Chf) except for a short-lived breakout attempt during the overnight session, the swissy only traded side-ways on Monday. The pair saw a 40-pip range during the early Sunday session, while the trading range got a little wider throughout the U.S. session. In tonight’s Asian session, the swissy continued to trade within a tight range.
The Yen (Usd/Yen) had a very strong swing in sentiment on Monday, during the overnight session. In the European session, the pair re-tested TheLFB S1 (94.55), after the market declined 60 pips. The pair failed to break any lower, and started to head higher in a very strong move that saw the pair gain more than 200 pips in just a few hours. At the end of the day, the yen gained 130 pips.
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