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Overall, the currency market had no clear direction tonight, even though the euro, the pound and the aussie saw some small bearish gaps around the Sunday open. In the last week of trading, the currency market appeared reluctant to break any important price points since the major equity market indexes continued to trade within the same tight range, but hopefully this week investors will be able to see once again a trending market. The Monday’s calendar is somewhat light, something that will probably be reflected in the currency market and in the majors’ price action.
The Euro (Eur/Usd) is currently trading near the support area from the last four days of trading, as the pair saw a 30-pip gap on the Sunday open. With few exceptions, this week the euro-area’s calendar will be light , continuing last week’s trend of with almost no important releases coming from the 16-nations.
The Pound (Gbp/Usd) moved side-ways throughout the Sunday session, lacking the necessary momentum to break any important swing areas. Similar to the aussie, the pound seems to have formed a double-top formation on the daily chart, something that should empower the pound’s bulls over the next few days of trading.
The Aussie (Aud/Usd) is currently testing the low touched on Friday, after the pair saw a 40-pip gap from Friday’s close. On the daily chart, the aussie appears to have formed a double-top formation, as it was unable to break above the 0.8240 area.
The Cad (Usd/Cad) had a small range of trading tonight, as the pair usually moves in the second part of the day. On Friday, the cad gained 160 pips and broke above the 20-day moving average, reflecting the weakness seen in the crude oil market. The next major resistance area for this pair is around the 1.3115, which represents the 23.6% retracement area of the downtrend that started in March.
The Swissy (Usd/Chf) had a 30-pip range during the Sunday session, being unable to move anywhere decisively. On the daily chart, the swissy is trading barely below the 20-day moving average, the resistance area that held the pair from surging higher throughout the last 6 days of trading.
The Yen (Usd/Yen) bounced off the high set on Friday during the Sunday session, and fell 40 pips down to the neutral pivot point (98.10). For the last few days, the yen traded within the same tight range, which prevented the pair from moving more than 180 pips last week.
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