FXstreet.com (London) - US stock markets continued to push upwards today on positive housing data, the latest positive signal for the growth prospects of the US economy. The inverse correlation we have seen between Dollar and alternative asset classes remains broken as stock markets and Dollar have both made gains in previous sessions.
Dollar rose across the board during the previous session, and this trend looks set to continue into Asian trading. During the opening minutes of Asian trading the major Dollar pairs look like this: EUR/USD 1.4253/58 (+0.04%), Swissy 1.0483/6 (-0.05%), Cable 1.5973/6 (+0.07%), USD/JPY 91.78/81 (-0.05%).
EUR/USD is still struggling, with Eurozone debt worries still at the forefront of investor concerns. Several major Eurozone states have been brought into question lately by ratings agencies, including Greece, Spain and Austria. In early Asian trading the pair quotes at 1.4254/8, totally flat from the open.
With the trend looking likely to extend in Asian trading, Valeria Bednarik, collaborator at Fxstreet.com, recaps on the technicals: Pair extended the downside to a fresh 3 months low of 1.4220 before rebounding to current levels. Hourly charts remain bearish thus bigger time frames had two particular details: rally is way over extended to the downside, while we approach to 1.4180 area, 50 % retracement of the weekly fall, plus past September low.
In the case of a reversal to the upside next key barriers will be 1.4300 then after that 1.4340.