After two days of equity selling the European equity markets have said “enough is enough” in the near-term and just reversed a 2% loss at the open, to now trade 0.4% higher. At the same time S&P Futures trade bounced off the 600 support area and moved to the swing point at 810. A move that holds both of these areas is likely to empower the majors to take back ground stolen by the Dollar Index recently, and to take advantage of near-term momentum that may come from huge 4 hour Usd resistance.

Today is the day of a massive Federal Reserve auction of freshly released Treasury notes, and although the auctions have been over-subscribed recently the fact that equities may move higher could pressure the buying momentum that came into the dollar as trade desks moved to bonds this week said Trade Team members.

April is historically bullish for stocks and by default then bearish for the dollar, and ahead of a shortened holiday week and four day weekend holiday for most outside of the U.S., the markets may just want to take some pressure off the over-commitment to greenback positions.

The alerts and signals posted reflect the possible swing change, and have aussie and yen positions covered. We will also be monitoring the reaction to the FOMC minutes that are released at 14:00 EDT today; Easter, Equities, Treasuries, The Fed, it could be a wild ride they said.