Overall, the majors were pulled higher by the rally seen in the equity markets yesterday. The move was extended in the Asian session, as traders re-priced the latest fundamental news coming from the U.S. session. As such, the currency market had a strong momentum in the Asian session, something not seen for a while. The European calendar looks very busy, and this will probably cause the currency market to trade on the same strong momentum and volume.
The Euro (Eur/Usd) finished the last day of trading 30 pips lower, but the euro managed to recover more than 130 pips in the U.S. session after it was sold heavily during the overnight session. In tonight’s Asian session, the euro rose 40 pips.
The Pound (Gbp/Usd) traded on a very strong momentum in tonight’s Asian session, and is trying something that has not succeeded in a long while: breaking above the 100-day moving average. Yesterday, the pound also tried this in the European session, but the move was easily rejected.
The Aussie (Aud/Usd) is gaining ground tonight for the eleventh consecutive day. The pair was dragged higher in the last period by the positive equity markets and by the strong gains seen in the commodity markets. Only tonight, the aussie added 60 pips, on top of the 100 pips gained yesterday.
The Cad (Usd/Cad) declined again in the last day of trading, falling a little more than 100 pips. The cad moved lower even from the Asian session yesterday, but needed four attempts during the overnight and the U.S. sessions to break under the 1.23 area. In tonight’s Asian session, the cad fell another 50 pips and re-tested the 1.22 area.
The Swissy (Usd/Chf) made a large doji-star yesterday, as the pair failed to break anywhere decisively. On the downside, the swissy was stopped by the same 200-day moving average, which acts as a support area for the last four days. In the Asian session, the swissy fell 20 pips.
The Yen (Usd/Yen) was pulled higher by the positive equity markets for a third consecutive day in the Asian session, gaining already 80 pips. Yesterday, the pair only moved up and finished the day gaining 130 pips. The next major resistance area for the yen seems to be the 99.00 area.