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Overall, the majors continued to move side-ways during the European session, similar to the last few days of trading. This might not have come as a surprise, since both commodity and equity markets failed to trend anywhere on Wednesday. To some extent, the current market environment is exactly the opposite of the one we had just a few months ago, when the market saw huge volatility and very strong moves out of nowhere that came on strong volume. This one has intra-day volatility, no volume, and no trend.

The Euro (Eur/Usd) tested the support trend-line that connects the Jun 16 09 and the Jul 16 09 lows during the overnight session, but the move reversed quickly as the pair hit TheLFB S1 (1.3865). For now, the euro is the only major pair that has managed to break above the range it developed overnight, something that denotes the pair’s strength.  

The Pound (Gbp/Usd) fell 60 pips during the Asian session, down to TheLFB R1 (1.6060). However, except for this, the pair was unable to do anything else during the overnight session, even though it had some shy attempts to break the side-ways range developed earlier in the day. During the European session, a release showed that the average price of the U.K. houses dropped by 0.5% in June, continuing the row of negative releases. 

The Aussie (Aud/Usd) moved lower during the first part of the overnight session, but since then the pair has swung around the 0.7860 area. On the daily chart, the aussie is trading slightly above the 50-day moving average, being the first time it touched it since mid-March. 

The Cad (Usd/Cad) was the only pair that managed to strengthen against the dollar and the yen throughout the Asian session. However, during the London open, when the major currencies moved against the dollar, the cad failed to follow the momentum and break below the neutral pivot point (1.1620). Over the last few days, the cad had seemed to have lost its cause. 

The Swissy (Usd/Chf) spent most of the overnight session trading up and down in a 20-pip range. However, during the London open, it managed to gain 40 pips, something that allowed the pair to test the 50-day moving average.

The Yen (Usd/Yen) sold off 60 pips during the overnight session, falling to TheLFB S2 (94.20). The 94.20 area represents an important support trend-line that connects the Mar 19 09 and the May 22 09 lows. The yen spent an important part of the European session around this price point, but it will probably need a stronger momentum to break lower. 

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