Overall, the currency market extended the rally from the last few days during the Asian session, and sold the greenback a little lower. However, it should be said that, as for now, most of the majors are sitting at very important swing points, which might turn out to be positive for the dollar in case the market lacks the momentum for a final push above the current support/resistance levels.
The Euro (Eur/Usd) seems to be in very a positive period. The single-currency strengthened tonight for the sixth consecutive day, as it opened for the Asian session trapped between the 50 and the 100-day moving averages. Yesterday, it was the same 100-day moving average that made the euro retrace almost half of its gains in the U.S. session.
The Pound (Gbp/Usd) advanced at a strong pace in the overnight session, but had to retrace some parts of the move during the U.S. session. The pound gained almost 320 pips from the session’s low, but during the late European session/U.S. open, the pair shed half of those gains. At the start of the Asian open, the pair was sitting just under the 20-day moving average.
The Aussie (Aud/Usd) found the strength to advance 70 pips and break above the 50-day moving average, in the last day of trading, but failed to break above the 100-day moving average. As such, the aussie starts the trading session caught between two important swing points.
The Cad (Usd/Cad) failed for a second consecutive day to break under the 20-day moving average yesterday. This happens, even though on both Friday and Monday the pair broke under the support level during the intra-day session. In tonight’s Asian session, it appears that the cad tried again to break under the 20-day moving average.
The Swissy (Usd/Chf) lacked some of the momentum seen in the other majors yesterday. The swissy was sold in the overnight session, but the pair failed to break under TheLFB S1 (1.1810), even though it spent most of the time trying to do so. During the Asian trading session, the pair extended the range seen in the late U.S. trading hours.
The Yen (Usd/Yen) traded on a very light volume Monday, and was not able to pull any decent trend. Most of the time, the pair traded in a tight range, especially during the U.S. session. However, the pair did manage to strengthen for the third day in a row.
Japans Tertiary Industry Activity Index increased 0.4 percent month over month in January. This was against analysts expectations for a 0.5 percent drop. Sectors that contributed to the increase in the index were postal services, information and communications, learning support, health care and welfare, and real estate. Meanwhile, these sectors declined for the month, transportation and the finance and insurance services.