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Overall, today’s market can be easily explained, it was a whole lot of nothing. The market’s ATR was very small, while the major’s momentum was even smaller. These two have caused the market to move sluggishly on Tuesday, having the major pairs reverse at the first resistance or support area they met. However, the cad was today’s exception, even though the pair has not moved at all over the last few weeks of trading. Ahead, the market is expected to retain the same momentum throughout the Asian session, as the market is preparing for the BoJ press conference. 

The Euro (Eur/Usd) traded in a 40-pip side-ways channel during the overnight session, which was broken during the U.S. trading hours. The pair gave some signs it wants to move higher during the first part of the day, but as soon as it hit the trend-line that connects the 07.01 and the 07.09 highs, the euro began tumbling. This happened, even though the euro had attempted to break the resistance level several times before. On the daily chart, the euro is trading just above the 50-day moving average.

A report showed that industrial production increased in May in the Euro-area for the first time in the last nine months, but still, the actual number was smaller than market expectations. At the same time, a different report showed that the economic sentiment in the Euro-area and in Germany weakened for the month of July from the previous one.

The Pound (Gbp/Usd) gained as much as 100 pips during the intra-day session, breaking above TheLFB R1 (1.6310), but the pair was not able to sustain this uptrend as the pair bounced from the 20-day moving average. During the U.S. session, the pound retraced most of the gains seen earlier in the day.

During the European session, a report showed that the U.K. CPI fell to 1.8% in June, for the first time below the BoE’s target since 2007. However, the same report also showed that inflation is still a problem in the U.K., having considerable higher values than in the Euro-area or in the U.S.

The Aussie (Aud/Usd) headed higher during the overnight session, but the pair’s momentum was lighter than usual. Just ahead of U.S. open, the aussie reached the 50-day moving average and at the same time a trend-line that connects the 06.30 and the 07.07 highs, but the pair failed to break above these two price points.

The Cad (Usd/Cad) showed a lot of strength during the European and the U.S. sessions, practically being the only pair that moved lower in these two sessions without retracing any important parts of the move. This comes, after the cad traded without any momentum over the last few weeks.  

The Swissy (Usd/Chf) gained around 100 pips during the U.S. session, after it traded flat throughout the earlier sessions. Moreover, most of the gains came only after the swissy broke above the trend-line that connects the 07.10 and the 07.13 highs. 

The Yen (Usd/Yen) had no clear direction on Tuesday, and traded most of the time side-ways, around the price it opened the Asian session. On Wednesday, the BoJ is expected to maintain the policy rate at 0.10%, and provide an upbeat forecast for the Japanese economy. 

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