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Overall, the currency market sent the dollar lower during the Asian trading hours. However, the London open made the dollar re-gain some of the ground lost earlier in the day. Just before the London open, the major currencies were trading near the resistance or support areas of the last U.S. session, thus still within the range of the last day of trading. In order to break these swing points, the currency market needs help from S&P futures, which until now have moved in a tight range.

The Euro (Eur/Usd) moved time higher throughout the Asian session, but halted its gains as soon as it hit the 1.3920 area, where it also topped on Tuesday. On the daily chart, the euro appears to be forming a head and shoulder formation, with the neckline around the 1.3800 area, just above the Wednesday’s open.

The Pound (Gbp/Usd) gained 90 pips and re-tested the 1.6480 area during the overnight session, the same place where the pound topped in the previous day of trading. The test was easily rejected, which made the pair shed every pip gained earlier in the day. During the European session, the pound traded in a volatile fashion, as a report showed that the unemployment rate and the claimant account increased less than expected in the U.K.. At the same time, the BoE minutes showed that the central bank had not seen any radical improvements in the real economy. 

The Aussie (Aud/Usd) lost a few pips around Wednesday’s open, but soon after the pair experienced a very strong uptrend, which allowed an advance of nearly 120 pips from the session’s low. Throughout the European session the pair continued to retrace some parts of the earlier gains. On Tuesday, the aussie formed a large pin-bar, reversal candle, on the daily chart. 
 
The Cad (Usd/Cad) had a weak attempt to break above the 1.1370 area during the Asian trading hours, but failed as it lacked the necessary momentum to move through with no overall market dollar based strength. The 1.1370 area has acted as strong resistance over the last three days of trading, something that suggest that this area will not give up easy. 

The Swissy (Usd/Chf) lost approximately 60 pips during the first part of the overnight session. However, the swissy reversed as soon as it hit the 1.0825 area, where it also bottomed on Tuesday. During the European session, a release showed that Swiss retail sales grew 1.2% in April from one year earlier. 

The Yen (Usd/Yen) tried to break below Tuesday’s low during the Asian session, but the pair failed so far. Soon after, the yen developed a 40-pip range delimited by the 96.35 area and by the neutral pivot point (96.75). On the daily chart, the yen is trading just below the area where the 20,50 and the 200-day simple moving averages meet. 

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