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Overall, the currency market had a very strong Asian session, one of the strongest over the last few weeks. Every major currency moved higher compared to the dollar, closely following the uptrend seen in the S&P futures market in the crude oil market. The European and the U.S. sessions have a clear economic calendar on Monday, which is important to note since most pairs are sitting near very crucial price points, which have held the pairs for weeks now. A clear calendar may allow the market to advance compared to the dollar, without interfering with the intra-day trend.
The Euro (Eur/Usd) tested the 1.4170 area during the Asian session, a resistance point that holds the pair for almost a month and a half. If the euro gathers enough momentum to break higher, the pair has a clear path to test the 1.4340 area, which is the high of the current year.
The Pound (Gbp/Usd) had a very strong Asian session. The pound managed to gain 80 pips and break above the 20-day moving average during the Sunday session, in addition to the fact that the pair managed to re-gain every pip it lost on Friday.
The Aussie (Aud/Usd) just reached the highest value of the last two months of trading, as the pair advanced 70 pips tonight. For now, the aussie is holding just below the 0.8100 area, the last major resistance area that has kept the pair from testing the highs reached in June. During the Asian session, a release showed that the Australian PPI fell 0.8% in the second quarter, more than it was expected.
The Cad (Usd/Cad) fell as much as 90 pips during the Sunday session, breaking below the range of the last two days of trading. The downside moves came as oil and the S&P futures headed higher tonight, a sign of dollar weakness. If the cad continues to move lower, the next important support area is in the 1.0950 area.
The Swissy (Usd/Chf) declined 40 pips to test TheLFB S1 (1.0725), but the pair lacked the momentum to move anywhere lower from there. On the daily chart, the swissy managed to break below the 1.0750 swing area, which held the pair over the last few weeks of trading.
The Yen (Usd/Yen) moved higher during the Asian session, extending the gains seen in the second part of the day, on Friday. The yen advanced as much as 40 pips during the Sunday session, and now is trading just below the 94.90 resistance area and at the same time, near the 20-day moving average.
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