Forex Stuck in a Range

Overall, the currency market experienced another day in which words like range-bound trading, low momentum and undecided can characterize the entire trading session.

The day was marked by indecision, with the major pairs moving up and down the break-even line. The currency market failed to move, even when the red-flag macroeconomic reports missed analysts' estimates, something that usually influences price action. Interestingly, the same resilience was seen in the commodity, equity and Treasury markets.

Dollar Index Technical View: The LFB Member Charts

Daily chart trend: Short. Main price points: 74.00, and 75.00. Looking for: Wave C)

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Trade Plan of the Day. Currency Glossary.

The euro (Eur/Usd 1.4975) spent the day moving up and down around the 1.4980 area. The pair's trading volume was lighter than usual in Tuesday trade, while the trading range was only 80 pips, substantially lower than the average moves of the last few weeks of trade. On the daily chart, the euro is trading very close to the yearly high.

The pound (Gbp/Usd 1.6725) had a daily range of approximately 190 pips on Tuesday, but most of it was built during the Asian session, when the pair plunged at a strong pace on talk of the U.K.'s credit rating status. However, since then, the pound moved into a recovery phase, creating an ascending triangle technical formation on the lower time-frames. In addition, the four-hour chart formed a number of bullish pin-bar formations.

The aussie (Aud/Usd 0.9295) was the best performing pair since the beginning of the year, but lately, the aussie has lost most of its momentum. In Tuesday trade it had a range of only 70 pips, far below the average of the last few weeks of trading. This comes as the aussie is trading just below the high of the current year.