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Overall, the dollar index lost some additional points on Thursday, as the major currencies advanced against the greenback. However, the gains seen in the currency market were modest, at best, since the major pairs were unable to break any important price points or at least to break the range of the last few days of trading. Ahead, on Friday, the calendar is loaded with important releases both in the European and in the U.S. sessions, which should assure decent momentum throughout the two trading sessions.
The Euro (Eur/Usd) gained 90 pips on Thursday and advanced some other 40 pips tonight, during the Asian session. For now, the pair is testing the resistance trend-line that holds the pair since 05.22. If the euro manages to break the resistance area, it would clear its path towards the 1.4050 area, where the current high of the year is.
The Pound (Gbp/Usd) traded in a wide range greater than 100 pips, but despite this, the pair moved only side-ways during the previous day of trading, on Thursday. At the end of the day, the pound formed a doji-star patten, which usually denotes the markets indecision. Moreover, in the last four days of trading, the pound was not capable of breaking anywhere decisively.
The Aussie (Aud/Usd) traded within the same range as it did in the previous two days on Thursday. The aussie traded relatively smoothly during the overnight session, but saw strong volatility during the U.S. session as the S&P was unable to break anywhere decisively in the first part of trading session. Even though the aussie advanced 80 pips, it still was unable to reach the 0.7880 area, where the current high of the year is.
The Cad (Usd/Cad) had a relative weak trading session on Thursday, even though oil created a new high for the current year. The cad traded in a 100 pip range, unable to break below the low set earlier this week, in the 1.1100 area. Meanwhile, crude oil touched the $65 benchmark on Thursday, gaining almost $2 in one day.
The Swissy (Usd/Chf) is once again trading above the 1.0810 support area, after it lost nearly 80 pips on Thursday. Over the last five days of trading, the swissy tested the 1.0810 area, but so far, it has struggled to break below this support level.
The Yen (Usd/Yen) advanced very sharply in the early part of the Thursday’s trading session, and moved mostly side-ways during the second part. The pair gained 160 pips and broke above the 20 and the 100-day moving averages, even before the London open, but the yen appeared to have topped as soon as it touched the trend-line that connects the 03.19 and the 04.28 lows. In tonight’s Asian session, the yen declined 45 pips.
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