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Overall, the currency markets saw a lot of indecision during the trading day. During the European session there was strong dollar strength. Then it was as if someone flipped a switch and the market saw dollar weakness just as quickly. Lately there has been a pattern of reversal from the European session to the U.S. session. Some pairs such as the euro were able to gain upwards of 0.7 percent while others, such as the pound, would barely register a move.
The euro (EUR/USD) has risen dramatically during the later part of the U.S. session. The pair found support early on near the 50 day moving average at 1.4092 before vaulting higher, surpassing the R1 pivot level which had shown resistance in the Asian session. The euro then broke the R2 pivot level which also housed the 20 day moving average with ease before finding strong resistance at the R3 pivot level. The pair has retraced 30 pips of that move but still looks to have a 0.72 percent gain on the day.
The pound (GBP/USD) after losing over 150 pips and finding support at the S1 support level the pair retraced most of that move as dollar weakness hit the currency markets. The pound almost made a second attempt on the 20 day moving average but looks to be closing out the session with a 0.10 percent loss. The four hour chart shows some significant resistance in the area of the 20 day moving average.
The aussie (AUD/USD) has once again tested the 20 day moving average after finding support at the lows of the previous day. The pair is currently struggling with the same area that it had trouble with during the Asian session. The 0.8100 to 0.8340 area has been a congestion point for the pair as it has not wanted to break too far in either direction for the past month.
The cad (USD/CAD) saw strength after crude oil gained on the day in New York trading. The pair had tested the 1.1100 area early in the session but could not sustain the move. The loonie found support at the 1.0950 level by the end of the U.S. session.
The swissy (USD/CHF) finally broke free of its ever condensing 20 and 50 day moving averages located at 1.0735 and 1.0780. The swissy also broke below the minor support level seen at 1.0670 a few days ago. The pair came to an abrupt stop a 1.0624 after trying to break lower on 3 consecutive 30 minute candles.
The yen (USD/JPY) has been trending ever lower after falling below all of the major daily moving averages. The yen tested the 200 day moving average in the early part of the Asian session but has not looked back since. The pair has gained 0.83 percent on the day as it finds support in the 93.70 area.
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