Currency Pair Overview: New Yearly Highs For Major Pairs

www.TheLFB-Forex.com The Forex Trader Portal

Currency Pair Overview:

New Yearly Highs For Major Pairs

Overall, the overnight session was flat, in-line with the last two trading sessions, with the major pairs failing to move anywhere importantly, except for the pound. Continuing on the same pattern as in the last few days of trading, most of the moves were concentrated during the U.S. session, which proved to be volatile due to the movement observed in the S&P futures market. 

Dollar Index Technical View: TheLFB Member Charts
Daily chart trend: Short. Main price points: 75.00. Looking for: Ending diagonal

Prices on the dollar index have reached new lows recently, which means that the final push of an ending diagonal is in progress. The market looks to be targeting the 75.00 support region, where an ending diagonal of a red wave V may be completed. If this is the case then traders should be looking for a long turning point, especially once the upper line of diagonal is taken out.

The euro (EUR/USD 1.5005) had a flat overnight session, but broke above the 1.5000 benchmark level during the U.S. trading hours. This had a strong effect in the financial market, especially in the commodity market, where crude oil jumped above the $81.00 area. 

The pound (GBP/USD 1.6590) had a very strong day, moving most of the time only higher. The pound surged as much as 250 pips, to test TheLFB R3 (1.6630), something that happens very rarely. Over the last two weeks of trading, the pound had been surrounded by strong momentum, which helped it recover a substantial part of the declines seen in September.

The aussie (AUD/USD 0.9260) managed to set a new high against the dollar in Wednesday trading, together with the euro and with the swissy. Much of the aussie’s uptrend was fueled by the commodity market, which is Australia’s biggest export market. As long as commodities will continue to advance, the aussie is set to continue its uptrend. 

The cad (USD/CAD 1.0450) tested the 20-day moving average in Wednesday trade, but the pair failed to break higher. Right now, on the daily chart, the cad is forming a candle similar to a doji-star, after Tuesday trade in which the pair surged 220 pips, the most over the last few months of trading.  

Trade Plan of the Day: TheLFB Trade Plan is USD/CAD, one of the six that are available to members on the major pairs each day, plus four Jpy based cross pairs, plus S&P futures, oil, gold, and the dollar index.

The swissy (USD/CHF 1.0060) moved on a light momentum, something that lately is becoming a pattern, and the swissy just mirrored the euro’s movements. Still, the pair found the strength to set a new yearly low during the U.S. session, in the 1.0030 area, just a few points above the parity level.

The yen (USD/JPY 90.90) is still searching for the right timing to break above the 91.00 area, something that it has struggled for more than a month to achieve. During the day, the yen traded flat for most of the time, without being able to pull any out of the ordinary movements.