Overall, the market saw very strong gains in the early part of the day on Thursday, but the moves were reversed during the rest of the trading day. As such, the Asian sessions starts with the euro, pound, aussie and the swissy trading exactly in the same place as yesterday, while the Canadian dollar started off lower in the new trading session. Ahead, the European session may be slow, as most of the European markets are closed to celebrate Labor Day.
The Euro (Eur/Usd) managed to break above the resistance trend-line that connects the 03.23.09 and the 04.06.09 highs. However, the moment was short-lived, since the pair plunged during the European session, erasing every gain made earlier, and traded side-ways during the U.S. session. During the Asian session, the euro found temporary support above the 100-day moving average. On Thursday, the euro formed a pin-bar, which may denote a turning point.
The Pound (Gbp/Usd) is trading barely above the 20-day moving average, after it also made a pin-bar formation on Thursday. During the early part of the overnight session, the pound advanced almost 200 pips, but the move was easily reversed during the European session. In the U.S. and in the Asian sessions, the pound traded side-ways.
The Aussie (Aud/Usd) broke on Thursday above the 200-day moving average for the first time since August 2008, and at the same time reached the highest valuation since October 2008. However, the moment was short-lived because the aussie, as the rest of the major pairs, saw strong selling orders during the European and the U.S. sessions. At the end of the day, the aussie formed a pin-bar. During the Asian session, the aussie rose 30 pips as it bounced off the 200-day moving average.
The Cad (Usd/Cad) fell 170 pips in the early part of the overnight session on Thursday. However, around that area, the cad hit TheLFB S2 (1.1855) and spent most of the European session trying to break lower. In tonight’s Asian session, the cad dropped 20 pips.
The Swissy (Usd/Chf) formed a large pin-bar on the daily chart, as the pair bounced off of the 1.1270 support area and 200-day moving average. Pin-bars are candles that have a small body but have a long upper/lower shadow, and usually appear around important turning points.
The Yen (Usd/Yen) advanced strongly over the last few trading sessions, managing to break above all of the important moving averages on the daily chart. On Tuesday, the yen advanced 110 pips, allowing the pair to avoid sell off from its high during the European trading hours. In tonight’s Asian session, the yen gained another 50 pips.