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Overall, the European based pairs, euro, swissy and the pound, still lacked a solid direction on Monday, but the other major pairs managed to post some gains against the dollar. Most noticeable is the cad, which is trading near the lowest value it has touched since early November 2008. Ahead, the Asian session seems to have a busier than usual calendar, something that may be reflected in the upcoming forex market moves.
The Euro (Eur/Usd) is currently forming a doji-star patter on the daily chart, extending the side-ways channel developed throughout the prior week of trading. During the intra-day session, the euro rose as much as 70 pips during the overnight trading hours, but erased a substantial part of those gains during the U.S. session.
The Pound (Gbp/Usd) spent an important part of the day trying to break above TheLFB R1 (1.6510), but despite this, the pair has failed to sustain the move. Interestingly though, the pound managed to hold steady during the U.S. trading hours, even though some of the other major pairs retraced their trends seen earlier in the day.
The Aussie (Aud/Usd) almost reached TheLFB R3 (0.8265) during the European session, but reversed and shed an important part of those gains during the U.S. trading hours. Despite this, the aussie still managed to break above the 0.8200 area, which has acted as a major resistance area during the previous week of trading.
The Cad (Usd/Cad) is preparing to close lower for the seventh consecutive day, during a time in which the other major currencies barely moved. However, the cad is now trading close to the 1.0800 level, which will require a strong momentum to break. The cad will most likely require the market to move together against the dollar in order to break lower where it would reach multi-month lows. .
The Swissy (Usd/Chf) moved lower throughout the European session, but the pair retraced every pip gained earlier during the U.S. trading hours. For now, the swissy is trading near the same price it opened at during the Sunday session, below the 1.0700.
The Yen (Usd/Yen) tested the resistance area formed by the 200-day moving average, but the pair failed to move higher. Over the last couple of months, the 200-day moving average has acted as an important swing area every time the pair has tried to break it, and look for it to continue to do that over the next few days.
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