FXstreet.com (Buenos Aires) - In what seems to be a quiet American session, with no real strength in stocks that struggle between strong bullish previous trend and early U.S. negative data, dollar holds the bearish bias against major rivals except Japanese yen.
It has been a challenging week for forex sentiment-based trading, as uncertainty continues giving mixed signals for short term dollar trading; the reversal in the inverse correlation triggered past Friday lasted till FED announcement of keeping rates low for an extended period of time. Correlation comes back into play, and bad dollar news triggered falling stocks and rising dollar, till today. The slump in Retail sales that could have meant a strong fall in stocks, barely trigger choppy movements that replicated in currency markets.
Still, and from a technical perspective, dollar remains bearish against major rivals, as key support/resistance levels remain far from current price. Levels to watch are as follows: EUR/USD 1.4200/1.4240 area; GBP/USD 1.6500; AUD/USD 0.8330; USD/CHF 1.0770; USD/JPY 96.30 and finally USD/CAD the 1.1050 area.