www.TheLFB-Forex.com The Forex Trader Portal
Overall, the dollar lost almost one full percentage point on Tuesday, as the major currencies advanced at a strong pace against the greenback. Most of the declines were fueled by the global recovery theme, which has made institutional traders increase their tolerance towards risk, and thus sell the safety of the dollar. Moreover, a number of investor raised questions about the dollar’s outlook as a reserve currency, putting more downside pressure on the dollar index.
The Euro (Eur/Usd) broke above the resistance trend-line that connects the 04.28 and the 5.18 lows on Tuesday, as the pair gained 180 pips. Most of the gains came during the late European and the U.S. sessions, even though the S&P futures barely moved at that time. During the Asian session, the euro gained 30 pips and re-tested the high reached on Tuesday.
The Pound (Gbp/Usd) rose as much as 310 pips during Tuesday’s trading session, having probably one of the strongest days for the current year. At the end of the day, the pound advanced 270 pips, helped by the gains seen during the second part of the day mainly. In the Asian session, the pound gained another 45 pips.
The Aussie (Aud/Usd) recovered every pip lost in the previous two days of trading, on Tuesday. Additionally, the aussie gained almost 2% on Tuesday, the most among the major pairs, and the second best performance among the most traded currencies, being beaten only by the Swedish Crown.
The Cad (Usd/Cad) declined 130 pips in the previous day of trading, on Tuesday, and broke under an intra-day trend-line that held the pair over the previous four day of trading. Unlike the other major pairs, the cad bottomed during the early U.S. session, even though crude oil continued to advance after this, creating a new high for the current year.
The Swissy (Usd/Chf) saw a day of strong declines on Tuesday, falling around 170 pips throughout the late European and the U.S. sessions. The next support for this pair is around the 1.0750 area, where the pair needs a week to gather the necessary momentum in order to break higher.
The Yen (Usd/Yen) declined nearly 110 pips on Tuesday, as the pair headed only lower. The pair’s decline was extended during the Asian session, as the pair continued to move lower, and fell another 30 pips. During Tuesday’s session, the pair broke below the 50-day moving average.
TeamLFB provides forex related market analysis and trade signals