FXstreet.com (Barcelona) - Despite record lows on U.S. consumer confidence and home prices in the U.S., stocks surged injecting some optimism in financial markets, and sending dollar down against most rivals except for Japanese Yen. Also FED chairman, Ben Bernanke said he's hoping the recession could end later this year, but he cautioned that a full economic recovery will take more than two or three years.
The Euro made a steady climb following stocks, reaching as high as 1.2876 despite the German IFO reading unexpectedly declining to 82.6 from 83.0, the lowest level in almost 20 years. Meanwhile Gbp remains around the 1.4500 level, with no much definition at sight.
Japanese yen extended its losses hitting 13-week low against dollar, and breaking key levels zone against Gbp and Euro.
EUR /USD - 4 hours charts have turn bullish in the pair, with indicators pointing for an upside continuation. Above the 1.2886 zone, the pair could approach to 1.2915, but more likely find resistance around 1.2957, 200 EMA and a daily descendant trend line. Break above this last, will send the pair to 1.2991 and above 1.3035 zone. Supports will be at 1.2830, 1.2790 and 1.2720.
GBP/USD - Holding around 1.4500, the pair remains slightly bearish yet moving in ranges. Consider resistances at 1.4537, 1.4589 and 1.4664. Supports for these next hours will be at 1.4446, 1.4410 and 1.4354.
USD /JPY - Over bough after continue yen sell off the pair is still under the 97.00 level. A downside correction seems likely for the next hours, with supports at 96.50, 96.10 and 95.55 zone. Above 97.00, consider resistances at 97.47 and 97.85 zone.