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Overall, Monday’s European session was slow going, with none of the major pairs managing to break any important price points, even though the Asian market initially looked promising. This has been the trend of the last few weeks; the currency markets a standstill. Today’s economic report calendar is clear of any important releases, but starting from Tuesday will be packed with important news reports.
The Euro (Eur/Usd) tested TheLFB S1 (1.3985) during the overnight session, but this was all the pair managed to do; during the European session the pair entered in a 40-pip side-ways channel. On the daily chart, the euro is trading just above the 20-day moving average at 1.4000, which has been an important swing point area over the last few days.
The Pound (Gbp/Usd) lost 100 pips during the Asian session, but the move reversed during European trading hours, when the pair tested support at the intra-day trend-line that connects the Jun 24 09 and the Jun 26 09 highs. On the daily chart, the pound continues to trade near the resistance area of the range it had developed over the last two weeks.
The Aussie (Aud/Usd) fell as much as 90 pips during the overnight session, and even managed to break below the 20-day moving average at 0.8000. However, this move was short-lived since the aussie soon reversed, retracing some of the recent declines. Moreover, the pair had a very small volume overnight.
The Cad (Usd/Cad) managed to break above Friday’s high during the Asian session, but despite this did not manage to add any further gains throughout the European trading hours. Historically the pair is linked to crude oil, but this correlation has started to weaken over the last week.
The Swissy (Usd/Chf) gained nearly 80 pips overnight, moving slowly higher after it bounced off from the 20-day moving average as support at 1.0820 in the early Asian session. The fact that the swissy is moving higher most of the time during any given session is a proof enough that the market is in dollar-buying mode.
The Yen (Usd/Yen) rose up to the neutral pivot point during the Asian session, but since then the pair has traded only side-ways. The next resistance for this pair is in the 95.60 area, which acted as a major swing point in the past. In addition, on the 4-hour chart, the yen appears to have developed a downside channel.
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