FXstreet.com (London) - US stock markets pushed upwards today on increased investor confidence. The inverse correlation we have seen between Dollar and alternative asset classes was broken for the second time in recent months, indicating a positive change in sentiment on the state of the US and global economy.
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 1.4288/92 (+0.08%), Swissy 1.0447/59 (-0.12%), Cable 1.6054/56 (+0.11%), USD/JPY 91.09/11 (-0.08%).
EUR/USD was testing three-and-a-half-month lows in the previous session, and continues to teeter around this area, currently trading at 1.4287, just 3 pips up from the open.
For support levels Valeria Bednarik, collaborator at Fxstreet.com, guides us: Hourly charts remain bearish despite bigger time frames hold the oversold condition, with no signs of correction yet. Well under 20 SMA, strongly bearish in the 4 hours charts, pair could extend the downside rally under past week low of 1.4260, with next key level to watch around 1.4180, 50% retracement of the monthly fall 1.6038/1.2330.
In the case of a reversal next key barriers are found at 1.4320 and then 1.4375.