NEW YORK ( TheStreet) -- The dollar index moved lower during the overnight session as traders looked to add risk to their balance sheets.

This has pulled the dollar index below the 75.00 area, the main swing point of the last two weeks of trading. The major pairs' uptrend was led by the pound, which surged on better quarterly data and by the yen, which fell to the lowest value touched since late January.

The U.S. session Wednesday is loaded with important news reports, which are likely to have an important influence on the currency market. Momentum and volatility are expected to pick up during the U.S. open.

Dollar Index Technical View: TheLFB Member Charts

Four-hour Chart Flows: Mixed Price Points: 74.70 and 75.88 Looking for: Short wave iii)

Momentum: The index went into neutral mode on Oct. 26 and has struggled to find the strength to easily create and hold a short trend. The sentiment is flowing from overbought to oversold in quick time and is following the global market open and close of Asian, European, and U.S. commercial markets. This is a tight trading range that is sitting at yearly lows, yet looks comfortable.

Elliott Wave: The dollar index (see the chart) has broken through the red wave i) low and 74.70 support area, which means that a red wave iii) may be in progress. If that is the case then the market may move down to the 74.20 region over the coming days, while the market trades below the red wave ii) top and 75.88 resistance.

We are looking for an impulse bearish structure (five waves of decline) in the black wave c/iii leg.

The euro (Eur/Usd 1.5025) recently tested the 1.5050 area, where the market has topped over the last month of trading. A break above this price point will follow only if the global equity markets turn deeply into the green. On the daily chart, the euro is trading above all of the important moving averages and near the yearly high.

The pound (Gbp/Usd 1.6710) had a very strong European open, surging more than 120 pips in a short period of time. This happened as the market prepared for the revised gross domestic product report, which showed that the U.K. economy contracted 0.3% in the third quarter, less than initially estimated. So long as the pound stays above the 1.6600 area, its outlook lies to the upside.

The aussie (Aud/Usd 0.9270) followed the market's momentum, and continued the uptrend started during the late U.S. session. In recent trade, the aussie bounced off a support trend line that has been holding the market for nearly five months.

The cad (Usd/Cad 1.0525) managed to break below the 1.0550 area during the European session, the same place at which the market bottomed over the prior two days of trading. To the downside, the next important support area is in the 1.0430 zone. A break below this price point will send the market down to a one-month low.

The swissy (Usd/Chf 1.0040) is currently trading near the low of the current year after the market fell 50 pips overnight. From here, it will need broad dollar weakness in order to continue its downtrend being unable to push lower on its own.

The yen (Usd/Jpy 87.80) was the star of the overnight session, falling nearly 100 pips to touch the lowest value since late January. The yen's breakout came during the early European session, when the pair experienced a surge in trading volume, suggesting that there was institutional interest backing this move.

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