Overall, the market saw relatively low trading volume over the last few days. The only exceptions were the euro and the yen, which appear to have kept their liquidity until now. Ahead, the European and the U.S. calendars are packed with important releases, today being the last important day of the week ahead of a holiday.
The Euro (Eur/Usd) formed a long legged doji patern on Wednesday, suggesting the market will need stronger momentum to break lower. Additionally, the pattern is trapped between two important swing areas: the 20 and the 100-day simple moving averages. In the Asian session, the euro dropped 30 pips.
The Pound (Gbp/Usd) saw side-ways action on Wednesday, as the pair recorded light volume. The pound traded on Wednesday within the range of the previous day, just bouncing off the first support or resistance area that came in its way. On Thursday, the BoE is expected to maintain the key interest rate at 0.50%.
The Aussie (Aud/Usd) has formed an indecision pattern on the daily chart again, the fourth in a row. The aussie’s 4h chart is starting to look disjointed, since almost every candle has a small body but long wicks, proving that the pair is unable to trend anywhere decisively.
The unemployment rate in Australia increased by 0.5 percent to 5.7 percent in February which is higher than analysts’ forecasts of an increase to 5.4 percent. The number of unemployed increased by 28.5K to 460,400.
The Cad (Usd/Cad) formed two consecutive doji-star patterns on the daily chart, denoting the market’s indecision. Additionally, both candles formed under the 20-day simple moving average, an important swing point for the cad lately. In the Asian session, the cad gained 20 pips.
The Swissy (Usd/Chf) spent Wednesday struggling to break above TheLFB R1 (1.1490) and at the same time above the 100-day simple moving average. The pair reached the resistance level in the first part of the day, but was not able to break above it despite the numerous attempts. Additionally, the resistance level was re-tested during the Asian session, but continued to fail again at that price point.
The Yen (Usd/Yen) re-tested the 200-day simple moving average on Wednesday, as the pair declined for a second consecutive day. Most of the selling came during the early part of the overnight session, and during the first few minutes of the U.S. session.