FOREX TRADING

The market showed a tendency to move higher against the U.S. dollar during the Asian and the European sessions, but so far, the major pairs have failed to break out of the range of the prior few days of trading. One exception was the pound, which advanced 90 pips overnight, but even so, this is below the pair’s ATR for this time of the day. Unless something happens during the U.S. session, the trading range is expected to remain subdued. The macroeconomic calendar is relatively light this Wednesday ahead of the Fed Beige Book, which does not necessarily help the currency market ahead of historically slow dollar index movement in Wall Street trade.

Dollar Index Technical View: TheLFB Member Charts

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Majors Running On Sentiment

Overall, the major pairs were testing immediate support and resistance areas during the overnight session. Some volume entered the market as the dollar began to weaken. There were no major news reports released during the session so the pairs are currently running on sentiment until the European session begins.

The euro (Eur/Usd 1.4857) is currently testing the 20 day moving average as resistance after falling below during the last half of the US session. Just above the moving average is the neutral swing point at 1.4892 which will add to the resistance.

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