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Currency Pair Overview:
Range Bound Forex Moves
Overall, the currency market experienced another day in which words like range-bound trading, low momentum, and undecided market can very easily characterize the entire trading session. The day was market by indecision, with the major pairs moving up and down the break-even line. The currency market failed to move, even when the red-flag macroeconomic reports missed analysts’ estimations, something that usually influences price action. Interestingly, the same resilience was seen in the commodity, equity and Treasury markets.
Dollar Index Technical View: TheLFB Member Charts
Daily chart trend: Short. Main price points: 74.00, and 75.00. Looking for: Wave C)
Above is one of three charts posted on this currency to members each day, that make up thirty charts in total that cover six major currency pairs, equity futures, oil, gold, and the dollar index. To access all, and to also receive trade plans, signals and member benefits, join TheLFB today.
The euro (EUR/USD 1.4975) spent the day moving up and down around the 1.4980 area. The pair’s trading volume was lighter than usual in Tuesday trade, while the trading range was only 80 pips, substantially lower than the average moves of the last few weeks of trade. On the daily chart, the euro is trading very close to the yearly high.
The pound (GBP/USD 1.6725) had a daily range of approximately 190 pips on Tuesday, but most of it was built during the Asian session, when the pair plunged at a strong pace on talk of the U.K.’s credit rating status. However, since then, the pound moved into a recovery phase, creating an ascending triangle technical formation on the lower time-frames. In addition, the 4-hour chart formed a number of bullish pin-bar formations.
The aussie (AUD/USD 0.9295) was the best performing pair since the beginning of the year, but lately, the aussie has lost most of its momentum. In Tuesday trade it had a range of only 70 pips, far below the average of the last few weeks of trading. This comes, as the aussie is trading just below the high of the current year.
The cad (USD/CAD 1.0495) is trading 50-pips below the Tuesday opening price, being among the only pairs that actually strengthened against the dollar. In addition, the cad managed to break below the 20-day moving average, which has been an important swing point over the last few weeks of trading. Right now, the cad continues to hold short mode, in the face of some strong attempts to break higher.
The swissy (USD/CHF 1.0080) had a daily range of only 50 pips, consolidating in the 1.0080 area, near the low of the current year. Against the euro, the swissy is trading in the 1.5100 area, near the low of the last few months of trading.
The yen (USD/JPY 89.85) wasted the entire day struggling to break below the 89.70 area, and failed to pull the move off. In addition, the yen had a range of only 15 pips during the U.S. session. The 89.70 area represents the support level of the last prior week of trading. A break below this area will probably help the yen test the low of the current year, in the 87.00 area.
TheLFB Trade Plan of the Day is one of the six that are available to members on the major pairs each day, plus four Jpy based cross pairs, as well as S&P futures, oil, gold, and the dollar index.