Overall, the Sunday session started off strongly, with the majors advancing against the dollar. Moreover, the major pairs managed to break above important swing areas tonight, even though the overall volume during the Asian session is low. This week holds a number of important news releases, like the interest rate decisions coming from ECB, BoE and the RBA, and the famous NFP report on Friday.
The Euro (Eur/Usd) rose strongly during the Sunday session, gaining 60 pips and testing the high reached on Friday. Additionally, the euro is trading above the trend-line that connects the 03.23.09 and the 04.06.09 highs, even though the market has been holding an indecisive pattern over the last few days of trading.
The Pound (Gbp/Usd) managed to break above the 1.4950 resistance level tonight. The pair peaked on Thursday and Friday at the same area, even though the market traded on stronger volume to end the week. The BoE has their interest rate meeting scheduled for Thursday, and we may see the pair trade in a defined range until then.
The Aussie (Aud/Usd) is currently trading above the 0.7325 area. Over the last few days of trading, this area has acted as strong resistance, stopping the pair from posting further gains. On Tuesday morning, the market expects the RBA to hold the interest rate at 3%.
The Cad (Usd/Cad) found the strength to break under the 200-day moving average during the Sunday session. The pair dropped 55 pips tonight, the fourth consecutive day the pair moved lower. Until Wednesday, cad’s calendar is free of any releases.
The Swissy (Usd/Chf) also opened under the 200-day moving average, the support area from the last few weeks of trading. The swissy dropped another 30 pips, struggling to break under the low reached on Friday.
The Yen (Usd/Yen) re-tested the 99.50 resistance area, where it also topped during Friday’s session. The yen is currently trading above the daily moving averages, helped by the strong gains seen over the last few days. Tonight, the Japanese market is closed for business, which may affect the currency..