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Overall, the market continued to buy the dollar compared to the other major currencies tonight. The moves are relatively strong since the currency market barely moves around this time of the day, something that may further empower the dollar bulls over the upcoming European session. However, this may only be a technical bounce on the dollar index, as it failed to break below the 80.00 area. On the medium to longer-term, the dollar’s outlook lies to the downside.
The Euro (Eur/Usd) declined as much as 50 pips during the Sunday open to test the low touched on Friday. With tonight’s declines, the euro broke below the support trend-line that held the pair over the last four days of trading, something that might be interpreted as negative. The single-currency has a relatively light calendar this week.
The Pound (Gbp/Usd) lost 40 pips, but for now the pound seems to be consolidating shortly above the neutral pivot point (1.6450) and above the highs touched over the last three days of trading. On the daily chart, the pound is trading above all of the important moving averages.
The Aussie (Aud/Usd) has already lost 50 pips tonight, falling near the 20-day moving average. The aussie usually moves very little during the Asian session, but for now investors seems to be turning bearish on the pair. Additionally, the aussie broke tonight below the support trend-line that held the pair over the last three days of trading.
The Cad (Usd/Cad) had no clear direction over the last four days of trading, as the pair failed to break anywhere decisively and formed only doji-stars patterns on the daily chart. However, tonight, the cad surged 30 pips and is currently trading near the resistance area of the range seen over the last period of trading.
The Swissy (Usd/Chf) opened the new week of trading slightly above the 20-day moving average, something that helped the swissy move straight up. Tonight, the swissy extended the move seen around the late U.S. session on Friday when it picked up 40 pips after it failed to break the low of the previous day.
The Yen (Usd/Yen) lost approximately 20 pips during the Asian session and is currently trading near the low touched on Friday, where the pair failed again to break above the resistance formed in the 96.60 area. On the daily chart, the yen is trading near the support trend-line that connects the 01.21 and the 05.22 lows.
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