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Overall, the major currencies strengthened against the dollar during the European session, as S&P futures recovered the points lost during the Asian trading hours. However, the future market was unable to break above the 941.00 resistance area, which has acted as a swing point for almost a week, and this was reflected in the currency market; major pairs retreated from the highs set during the second part of the overnight session. Ahead, the release calendar is very light, something that will make forex traders focus more on the S&P futures correlation. 

The Euro (Eur/Usd) gained a little more than 100 pips during the European session, reversing the declines seen during the Asian session. Additionally, the euro tested the trend-line that connects the Apr 08 09 and the May 15 09 lows during the European trading hours, but the pair failed to break the resistance area.

The Pound (Gbp/Usd) tested the neutral pivot point (1.5980) support area in the late Asian session, and from there the pair surged higher, gaining approximately 180 pips until it topped near TheLFB R1 (1.6160) during the European session. In order to break higher, the pound may need the entire currency market to follow, since the pair lacks the necessary momentum to break the resistance area on its own.

The Aussie (Aud/Usd) traded within the range of the previous day throughout the overnight session. The pair came very close to the 20-day moving average as support during the Asian session, but reversed and then broke above Tuesday’s opening price during the London open. Despite this, the pair was still unable to break the 0.7930 resistance area, which has acted as a swing point in the last few days. 

The Cad (Usd/Cad) fell about 80 pips during the European trading session, as crude oil headed towards the $69 level, and at the same time S&P futures moved towards the 941.00 resistance area. However, cad lost most of its momentum as soon as it hit TheLFB S1 (1.1100), something that is starting to look like a pattern lately. 

The Swissy (Usd/Chf) has followed the euro very closely in the last two days of trading, practically mirroring its moves. As such, the swissy rose about 60 pips during the Asian session, but headed lower during European trading hours. On the daily chart, the swissy is trading just below the 20-day moving average. 

The Yen (Usd/Yen) fell as much as 60 pips during the overnight session, and briefly touched TheLFB S2 (97.85). Yesterday, the yen traded in a tiny 45-pip range, unable to pull any important moves even though the rest of the major pairs moved strongly. 

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