Overall, the Asian session started very strongly, with the dollar being the major casualty. The currency market was helped decisively by U.S. futures, which are trading well into positive territory for the first time in the last few days. Ahead, the euro-area holds some important releases for the first time this week.
The Euro (Eur/Usd) gained 50 pips during the Asian session, paring the decline seen one day earlier. The daily chart shows that the pair needs to break either the 20 (resistance) or the 100 (support) day simple moving averages before it will be able to post any significant movement.
The Pound (Gbp/Usd) just broke above a resistance line that has held the pair since the middle of yesterday’s European session, despite the strong volume of trading seen on Wednesday. In last two days, the pound has risen 160 pips, from which 50 pips came during tonight’s Asian session. The pound reached the highest valuation since January 12 tonight.
The Aussie (Aud/Usd) is trading just a few pips below the 200 day simple moving average, after advancing 70 pips on Wednesday. Additionally, the aussie added another 40 pips during tonight’s Asian session, as the pair experienced a surge in momentum.
The Cad (Usd/Cad) is currently moving lower in a linear regression channel. The pattern has developed over the last few days of trading, and has helped the pair push the price action below the 1.2200 support level. Tonight, the cad declined for the eighth consecutive trading day.
The Swissy (Usd/Chf) developed an intra-day support line, which helped the pair advance 70 pips during Wednesday’s trading day. However, in tonight’s Asian session, the swissy managed to break below the support trend line and declined 40 pips.
The Yen (Usd/Yen) is currently re-testing the 99.50 area, after attempting two similar breakouts during the last U.S. session. On Wednesday, the yen found the strength to reverse a 70 pip decline seen during the early part of the overnight session, and close the day above the 200 day simple moving average.