Forex Online Currency Analysis – Overnight Session

Tuesday, April 14, 2009

These days Dollar is on its full mood. We could witness great recovery and continued strengthening against all major currencies. It is believed that the next volatility could be seen for the dollar in the U.S. session when the release of two important releases, PPI and retail sales, according to the forex online reviews. Looking at the Daily FX currency analysis:

The EUR/USD seen a resistance at the 20-day SMA in the early Asian session and dropped to 100 pips. The traders believe that the euro's decline was in sequence with the selling experienced in the other major pairs, as the dollar posted strong gains tonight on risk-aversion.

The CAD was struggling during the overnight session in order to break above the 1.2240 area, at same place it acted as a resistance during the last U.S. session. In the middle of the trading session, the sentiment of the traders for the Canadian dollar seems to have turned little bearish when the crude oil seen a strong declines lately.

Forex brokers and traders experienced that the Pound traded flat during the Asian session and believes hard that GBP/USD would attempt to break any higher as the session came to a close. Currently, the sterling pound is trading near the opening price of the today’s session. The daily chart shows that this pair is trading very close to a vital swing point, which would require tough force in order to break this level.

The Swissy was on top when it gained 100 pips during the last overnight session, retracing the decline seen yesterday. We noticed that the most gains of this pair came during the late Asian and early European trading hours as the pair gathered good momentum.

The AUD/USD dropped almost 80 pips during the overnight session in contrast with the major gains seen in the previous day of trading session. Moreover the good news is that the aussie crossed the highest valuation in the last half year when yesterday it moved very close to the 200-day SMA.

One of the major releases for today is the National Australia Bank business confidence report. It is seen in the report that Business confidence in Australia has improved to -13. It is an improvement of 9 points from last month's reading of -22.

Lastly, the Yen dropped to 70 pips during the last Asian session, but hit support at the level of 99.40 soon after the European market open. The Japanese yen strengthened overnight as the currency market was driven by risk aversion once again.


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