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Overall, the currency markets moved mostly side-ways on Monday, but posted declines after the open of the Asian session. This move came from the equity futures markets when the S&P futures dropped. The dollar posted tonight its first signs of strength after a week of the major pairs advancing strongly against the greenback.
The Euro (Eur/Usd) just broke underneath an upward channel that influenced the pair over the last five days of trading. The euro lost 50 pips during tonight’s Asian session, falling down to TheLFB R1 (1.3970) and at the same time the low it touched on Friday and Monday. Moreover, the euro also closed lower on Monday, declining for the first time after five days of continued euro strength.
The Pound (Gbp/Usd) moved a limited number of pips during the early part of the overnight session on Monday, but the market’s volume soon dried out. In contrast, the pound almost came to a standstill during the late U.S. session. In the Asian trading hours, the pound declined in-line with the rest of the majors, and dropped 50 pips.
The Aussie (Aud/Usd) had a 50-pip range on Monday, trading between TheLFB S1 (0.7770) and the neutral pivot point (0.7820). The aussie finished the previous day of trading, Monday, posting only a limited decline. However, tonight during the Asian session, the aussie quickly lost 60 pips and broke below the support area seen on Friday and Monday.
The Cad (Usd/Cad) closed higher for the first time in the last six days of trading on Monday as it bounced from an 8 month low. Over the last few days of trading, the cad formed a downward channel but during the Asian session, the cad tested its resistance trend-line. If it breaks higher, the cad may retrace some portion of the recent gains.
The Swissy (Usd/Chf) lost 15 pips on Monday, being the sixth consecutive day in which the pair declined. Similar with the rest of the market, the swissy moved more out of inertia rather than out of any real momentum. During the Asian session, the swissy bounced off Monday’s low and surged 30 pips.
The Yen (Usd/Yen) formed a doji-star pattern in the last day of trading, denoting the market’s indecision. The pair traded on a light volume, something that held the yen from breaking any important swing points during the intra-day session. As such, the yen traded only between the neutral pivot point (94.50) and TheLFB R1(95.15)
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