Currency Pair Overview: Majors Lacking Direction

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Currency Pair Overview:

Majors Lacking Direction

Overall, the aussie was once again the major mover during the Asian session. The pair dropped 90 pips after retail sales came in lower than expected at -0.2 percent, which overshadowed the fact that building approvals came in above expectations at 2.7 percent.

Dollar Index Technical View: TheLFB Member Charts
Daily chart trend: Mixed. Main price points: 74.95, and 76.57. Looking for: Wave ii
 
The dollar index is trading higher, and very close to the 76.57 top, where a possible break will put the higher black wave iii shown below in play. If this resistance area holds, the move of a corrective wave ii,  with wave c down to 50% or 61.8% retracement areas, is still possible.
 
This long wave count stays valid if the 74.95 area holds as support. Any break of this low will invalidate the wave count, as wave two must not make a retrace of more than 100% of the wave one distance.

The euro (EUR/USD 1.4717) has been oscillating around the neutral swing point at the start of the Asian session. The pair found support slightly below the 50 day moving average at 1.4630 during the previous session. To the upside, resistance is firmly set at the 20 day moving average at 1.4850.

Trade Plan of the Day: TheLFB Trade Plan is GBP/USD, 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 pound (GBP/USD 1.6406) has been declining since the new session started. The pair is struggling to break free from the 20, 50, and 100 day moving averages which are all converging within 100 pips of each other. The 20 and 50 day are located near the 1.6300 area. The 100 day has acted less as support or resistance and more like a magnet, drawing price towards it every few days. 

The aussie (AUD/USD 0.9001) has fallen below the neutral swing point at 0.9010. The pair has support at the 0.8900 area which is where price has rebounded from during the past few days. Resistance for the pair sits at the 20 day moving average at 0.9130 and above that at the 0.9350 level.

The cad (USD/CAD 1.0672) is currently testing the 50 day moving average at 1.0693 as resistance. The pair fell below this level late in the US session. The 1.0650 area acted as support once again after the decline. Resistance for the pair is situated at 1.0915 which is near the 100 day moving average and the R2 swing level.

The swissy (USD/CHF 1.0268) is using the 20 day moving average as support during the Asian session. Below that, the pair will find more support at the 1.0150 area. Meanwhile, resistance is firmly placed at 1.0290.

The yen (USD/JPY 90.17) has been trading around the neutral swing point at 1.0265 during the entire session. The pair declined after being strongly rejected from the 50 day moving average during the US session. Support is being found near the 1.0260 level and below that at the 20 day moving average at 1.0190.