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Overall, the majors recovered the declines seen during the overnight session with relative ease. The only exceptions were the euro, which is still trading near the 200-day simple moving average and the swissy, which moved side-ways. The currency market was helped to advance by the S&P futures, which rose during the European session. Ahead, investors will remain focused on the equity, commodity and currency markets, as the economic calendar is practically empty.
The Euro (Eur/Usd) re-tested the 200-day simple moving average during the overnight session, but was unable to break below and showed a lack of momentum throughout. The rest of the major pairs moved relatively strong until now, but the euro has so far traded sideways with no direction.
The Euro-area adjusted trade balance was released at -2.1B in March, better than expected. In March 2009 compared with February 2009, seasonally adjusted exports rose by 1.4% and imports by 0.6%.
The Pound (Gbp/Usd) had no clear direction during the first part of the overnight session, but surged higher shortly after the London open. Over the last few days of trading, the pound traded side-ways, gaining ground one day, but giving it back in the following day. If the S&P futures find a solid base, the pound might set the ground for some strong trends.
The Aussie (Aud/Usd) rose strongly in the second part of the Asian session and into the European trading hours, gaining nearly 80 pips. Currently, the aussie is approaching the resistance line of the last few days of trading. If the aussie breaks higher, the road might be clear towards the 0.7700 region once again.
The Cad (Usd/Cad) made a new high for the last few days of trading during the early part of the overnight session, but started to move lower with the crude oil market. For now, the cad is trading just below the neutral pivot point (1.1740). On the daily chart, the cad appears to be trading in an uptrend channel.
The Swissy (Usd/Chf) gave the impression that it wanted to break the low established on Friday during the Asian session, but the pair never pulled the move. Since then, the swissy has traded side-ways, in a similar pattern as the euro. For now, the swissy is trading just below the 1.1250 resistance area.
The Yen (Usd/Yen) moved lower during the early part of the overnight session, breaking below the 100-day simple moving average. However, the pair recovered the ground loss during the European session, in-line with the S&P futures. The next big test for the yen is at the 95.50 area.
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