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Overall, the major pairs moved higher against the dollar on moderate volume, even though part of the time the forex market spent the prior European and U.S. sessions trading side-ways. For now, most pairs are trading near very important swing areas that once broken, may send the major pairs near the high of the current year. The pound, the aussie and the cad are most likely to attempt such a breakout, and can only happen in a session of overall dollar weakness.
The euro (Eur/Usd) surged 60 pips during the Asian session, even though the market momentum was relatively low. With these gains, the euro made up for the prior two trading sessions, where it traded flat even while the global financial market posted strong gains.
The pound (Gbp/Usd) is trading just below the 1.6525 area, which represents a very strong resistance area. The pair has struggled to break higher for the last eight days, but until now, has failed to sustain the breakout attempts. The pound has a clear calendar during the European session, something that may be reflected in the pair’s price action.
The aussie (Aud/Usd) advanced 35 pips during the Asian session, to test the 0.8280 area, the same place where the aussie topped during the prior U.S. trading hours. Ahead, the aussie’s outlook remains to the upside, something that might help the pair test the 0.8340 area.
The cad (Usd/Cad) is struggling to break below the 1.0800 area, which represents the low of the prior two days of trading. If the cad breaks lower, it may test the 1.0750 area, the low of the current year. On Thursday, the cad and the aussie were the only major pairs that managed to develop and sustain a trend against the dollar, while the rest of the major currencies traded flat.
The swissy (Usd/Chf) declined 30 pips during the Asian session, something that helped the pair test the 1.0840 area, the place where the swissy bottomed on Thursday. On the daily chart, the pair remains trading between the 1.0750-1.0900 area, which has proved to be very volatile over the last few months.
The yen (Usd/Jpy) is currently trading slightly above the 200-day moving average, after it retraced some of the gains seen during the last few trading sessions during the Asian trading hours. In the near-term, the yen outlook lies to the upside, as traders are likely to continue selling the Japanese yen.
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