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Overall, the major pairs continued to swing near important price areas, which could prove to be the last price point areas before the currency pairs are able to test the highs reached in June. Moreover, this would help the market break free from the range seen over the last two months of trading, when the major currencies have only moved side-ways in a choppy market. Investors are now preparing for the 8:30 GDPs releases from the U.S. and Canada, which is likely to influence forex market movement.
The euro (Eur/Usd) had a very strong Asian session, gaining nearly 80 pips and touching TheLFB R2 (1.4140), but all this ended shortly after the London open. Since then, the euro has retraced some parts of the moves seen earlier in the session, but still the pair’s outlook lies to the upside.
The pound (Gbp/Usd) gained 80 pips during the Asian session, but entered in a side-ways trading range throughout the European session, just below TheLFB R1(1.6565). On the daily chart, the pound looks like it is trying to build the necessary momentum to break above the 1.6600 area, which is an area that has held the pair for almost two months now.
The aussie (Aud/Usd) spent an important part of the overnight session building momentum to break above the 0.8280 area, but so far the pair has failed to sustain the move as the global market enters in a side-ways channel. On the medium term, the aussie’s outlook lies to the upside, something that is likely to be reflected in the pair’s valuation.
The cad (Usd/Cad) continued to move lower during the overnight hours, extending the declines seen during the last few trading sessions. For now, traders are preparing to absorb the two GDP releases, scheduled at 8:30am EDT, which are likely to have a strong influence over the forex market.
The swissy (Usd/Chf) fell down to TheLFB S1 (1.0835) and at the same time near the low touched during the previous day of trading. The pair completely retraced the move during the European session. On the daily chart, it remains trading between the 1.0750-1.0900 area, which proved to be a very volatile area over the last few months.
The yen (Usd/Jpy) tested the 95.30 area during the overnight session, which acted as a resistance area over the last few days of trading. The yen used that area to spring and bounce higher recovering the ground lost earlier in the day, and now is trading once again near the 50-day moving average.
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