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Overall, the currency market moved side-ways during the Asian session, as it does most of the time. For now, some of the major pairs are consolidating near the high or the low of the prior day of trading, paving the way for the London open. Ahead, the European session might be lighter than usual, as the number of economic reports expected is relatively small- the preliminary CPI report from Germany, and the lending numbers out of the U.K. Despite this, the U.S. open may prove to be again very dynamic, as in the last few trading sessions.

The euro (Eur/Usd) is trading near the 1.4170 area, which has acted as an important swing area over the past few trading sessions. In order to move higher, the euro will need to pick up strong momentum, which might not be easy to achieve. The euro-area has a clear economic calendar on Wednesday, something that may be reflected in the pair’s behavior. 

The pound (Gbp/Usd) re-tested the 1.3920 area during the Asian session, the same place it bottomed on Tuesday. The test was easily rejected, as the pair’s momentum was very light, something that caused it to retrace a portion of the downtrend seen during the prior U.S. session. 

The aussie (Aud/Usd) managed to gain 30 pips on Tuesday, even though it advanced more than 100 pips in the first part of the day. During tonight’s Asian session, the aussie attempted to move lower, but reversed near the first support area that it crossed. 

The cad (Usd/Cad) moved up and down around the 1.0800 area since the close of the U.S. session, as the pair lacked the momentum to sustain any trends or breakout attempts. On the daily chart, the cad is trading near the lowest value it has touched in more than a year, something that should help it pull institutional interest. 

The swissy (Usd/Chf) declined 30 pips during the Asian session, falling down to the neutral pivot point (1.0730). The swissy is now trading just below the 1.0750 area, which has been a major swing area over the last few weeks of trading. In order to develop a strong downtrend, it will have to break break-free from this area. 
 
The yen (Usd/Jpy) traded in a 30-pip range during the Asian session, below the neutral pivot point (94.60) but slightly above the 20-day moving average. On Tuesday, the yen closed the day 70 pips lower, as the pair bounced off the 200-day moving average.

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