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Overall, the market looked for solid direction throughout the Sunday session, but this may only come during the European session as the market gathers additional momentum with an increased level of market participants. Near the opening bell, the major pairs have declined against the dollar, but this move was easily rejected at the first intra-day support or resistance area that crossed the pairs’ path.
The Euro (Eur/Usd) declined 60 pips and tested the 1.4180 area during the Sunday session, but the pair bounced back from the support area as it lacked the necessary momentum to move lower. During the European session, investors are expecting the M3 numbers from the Euro-zone and the German Consumer Climate report, but these releases usually fail to move the market.
The Pound (Gbp/Usd) is trading just above a trend-line that holds the pair since 2009.07.13 and, at the same time, slightly above the 20-day moving average. During the Sunday session, the pound declined 65 pips, but the pair bounced back and recovered almost every pip lost earlier.
The Aussie (Aud/Usd) is showing bullish momentum even from the first few trading hours. The aussie gained 30 pips during the Sunday session, and is currently trading near the 0.8200 area, the place where the pair bottomed throughout last week.
The Cad (Usd/Cad) lacked clear direction throughout the Sunday session, similar to how the other pairs behaved at this time of the day. On the daily chart, the cad is trading above the 1.0800 area, a price point that holds the pair since October 2008.
The Swissy (Usd/Chf) opened the Asian session within the range of the last few trading sessions. For now, the swissy is trading slightly above the 1.0700 area, which has acted as an important swing point over the prior week of trading.
The Yen (Usd/Yen) extended the side-ways channel it developed on Friday, moving up and down in a 20-pip range during the Sunday session. Going forward, a very strong resistance area is building up, formed by the 95.00 area and by the 200-day moving average
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