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Overall, the three European based pairs, the euro, the swissy and the pound proved to be a major disappointment on Thursday, especially during the U.S. session. The three traded in a 30-pip range, even though the global equity market set new highs for the current year, while crude oil had one of the best intra-day performances of the last few months. However, the commodity pairs, aussie and the cad, found the strength to advanced against the dollar, but still they had weak momentum compared to the momentum seen in the financial market. Also, during today’s session, the yen finally managed to break above the 200-day moving average.
The euro (Eur/Usd) had probably one of the weakest days of trading of the last few weeks. The euro spent almost the entire day struggling to break above the neutral pivot point (1.4075), but since then, the currency has still failed to pull off the move. Going forward, the euro is likely to pick up stronger momentum, something that will certainly help the pair follow the major financial market movements.
The pound (Gbp/Usd) bounced from the 20-day moving average during the early European session, gaining 100 pips, but since then, the pair entered into a 35-pip side-ways channel. Over the last few weeks of trading, the pound saw an extended side-ways move on the daily chart, even though the pound is known for its strong trending capabilities.
The aussie (Aud/Usd) was among the only pairs that managed to strengthen against the dollar on Thursday, helped by the strong gains seen in the commodity market. The aussie gained 120 pips since the Asian session opened, but now the pair seems to have topped near the 0.8280 area, very close to the high of the current year. Ahead, the aussie’s outlook remains to the upside.
The cad (Usd/Cad) fell approximately 80 pips during the European session and throughout the early U.S. trading hours, recovering almost every pip gained during the previous day. However, for the rest of the U.S. session, the cad moved only side-ways in a 20-pip range, slightly below TheLFB S1 (1.0825).
The swissy (Usd/Chf) had no clear direction throughout Thursday’s trading session, similar to how the other European based pairs behaved. Most of the time the swissy moved up and down around the 1.0875 area, which is likely to act as an intra-day swing point going forward.
The yen (Usd/Jpy) saw a 30-pip range during the first part of the day, but then the pair surged 60 pips and managed to break above the 200-day moving average, something that the pair has failed to do over the last five days of trading. The next major resistance area that the pair will have to face now is the trend-line that connects the 2009.04.06 and the 2009.06.10 highs.
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