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Overall, the major currencies moved lower against the dollar during the Asian session. Interestingly enough, the euro, pound, swissy and the cad are currently trading close to the low of the last few trading sessions, even though the S&P futures are trading near the high of the last few sessions. The separation between the currency market lows and the S&P futures highs were most likely caused by Bernanke's testimony, which said that rates are likely to stay low for a longer period. Ahead, there are just a few economic releases scheduled during the upcoming European and the U.S. session, but most of them are very important and are likely to have an important effect in the forex market.

The Euro (Eur/Usd) lost 40 pips throughout the Asian session, inline with the other major currencies. On the daily chart, the euro is trading just above the 1.4170 area, which acted as a major swing point for more than a month, and could provide strong support during the upcoming sessions. 

The Pound (Gbp/Usd) is currently caught between two important intra-day areas, forming a descending triangle pattern. However, even if the pound breaks to the downside, a common trading pattern in the descending triangle, it will hit the 20-day moving average in quick time.

The Aussie (Aud/Usd) managed to close in the green on Tuesday, even though the gains were small, helped by a 90 pip rally seen during the second part of the U.S. session. Moreover, the aussie’s upside rally was actually the strongest among the major pairs at that time, something that suggests the aussie’s outlook lies to the upside, as long as the currency market sells the U.S. dollar.

The Cad (Usd/Cad) is currently trading within the same side-ways channel it had developed over the last two days of trading, even though the cad managed to break below it during the prior U.S. trading session. On Tuesday, the cad formed a doji-star pattern on the daily chart, which usually denotes the market’s indecision. 

The Swissy (Usd/Chf) advanced 30 pips during the first part of the Asian session, as the whole market moved lower against the dollar. For now, the swissy is trading slightly below the 1.0700 area, which has acted as an important intra-day swing point lately, and very close to the trend-line that connects the 2009.07.14 and the 2009.07.17 highs.

The Yen (Usd/Yen) bounced from the neutral pivot point (93.75) during the Asian session, falling 30 pips. During the last U.S. session, the yen fell as much as 100 pips, but recovered some of the losses during the late trading hours. 

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