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Overall, the major currencies gained a few pips compared to the dollar throughout the Asian session, which denotes that for now, the market is buying risk. The moves pulled until now still need to be confirmed by the London open, because it is too early to tell if these moves were just a reaction to Thursday’s strong selling, or if the market has decided to turn around and buy the higher yielding currencies.
The Euro (Eur/Usd) gained 40 pips throughout the Asian session, something that shows the market is in a risk-tolerance mode. However, the pair now needs strong momentum to move anywhere higher, since the euro is trading just below the 20-day moving average and at the same time just below 1.4000 area, which is an important swing point.
The Pound (Gbp/Usd) bounced from the 1.6320 area during the early Asian session, something that helped the pair gain 60 pips, up to the neutral pivot point (1.6385). On the intra-day charts, the pound appears to be forming a descending triangle pattern, which is usually seen as a bearish formation.
The Aussie (Aud/Usd) rose 50-pips from tonight’s Asian open helped by the gains the major currencies posted compared to the dollar during the Asian session. However, now the aussie is trading just below the neutral pivot point (0.7970), an area which may hold the pair for the next few hours, until the London session opens.
The Cad (Usd/Cad) declined as much as 40 pips during the Asian session, something that rarely happens since the cad usually trades on very thin volume at this time of the day. On Thursday, the cad rose 160 pips retracing every pip the cad gained in the prior day, on Wednesday.
The Swissy (Usd/Chf) bounced from the 1.0900 area just before Friday’s session opened, something that made the pair decline approximately 30 pips during the Asian session. On the downside, the next major support area might be the 20-day moving average, which has acted as a major swing point lately.
The Yen (Usd/Yen) traded in a 25-pip range throughout the Asian session. On the upside, the range was delimited by the 96.00 area, while on the downside by the low made on Thursday. At the same time, on the daily chart the yen is trading just above trend-line that connects the 06.19 and the 06.25 highs.
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