Currency Pair Overview Somehow A Usual Asian Session

Overall, the currency market worked without any major surprises in the Asian session. The only out of the ordinary is that the euro managed to break above the local resistance in the Asian session, something that rarely happens. The rest of the market was quite normal. The calendar ahead, in the European session, is very light so probably the market will work with more inertia.

The Euro (EUR/USD) broke above the 1.34 resistance area in the Asian session, the place where the pair had topped both on Thursday and on Friday. Since the new trading week started, the euro rose 50 pips, extending the last week’s gains.

The Pound (GBP/USD) rose 60-pips since the new trading week started. Around this point, the pair topped on Friday in the U.S. and in the European sessions. In the last few days, the pound traded very volatile.  

The Aussie (AUD/USD) just bounced off the 50-day moving average in the Asian session, gaining 50 pips. In the last few weeks, the aussie traded mostly in a wide range, however, it now looks capable of breaking higher if the market will support the move.

The Cad (USD/CAD) fell 60 pips in the Asian session, down to the neutral pivot point (1.2420). The cad is trading under an important resistance area for the moment, the 20-day moving average. The cad struggled a long period to break under this moving average, and will probably create some problems in the future too.  

The Swissy (USD/CHF) is heading lower for the last three consecutives days. In this period, the pair broke under both the 20 and the 50-day moving averages, something that it has not succeeded lately. In the Asian session, the swissy fell all the way down to TheLFB S1 (1.1715).

The Yen (Usd/Yen) gained 80 pips in the Asian session, after it bounced off the neutral pivot point a few minutes earlier (90.40). These days, the yen trades around the lowest value reached in the last 13-years, as the market is dragged lower by risk aversion.

Sentiment among Japan's largest manufacturers fell the most in 34 years, signaling companies are likely to cancel spending plans and cut more jobs, pushing the economy further into recession. The yen's surge to a 13-year high last week has compounded woes for Japan's manufacturers who are already reeling from a collapse in export markets. Layoffs by companies including Sony Corp. and Toyota Motor Corp. have brought the recession home to households and increased the risk of a prolonged slump.