FXstreet.com (London) - The three major US stock markets all posted small gains in a guarded session this afternoon. Despite 'the first hawk being let out the cage' as one commentator put it, FED more bullish than usually update on the economy failed to move markets significantly. Nikkei opened the session with a gain of around 50bps, which it has held in the first hours trade.
In early Asian trading the Dollar was flat across its major pairs today, broad picture looks like this: EUR/USD 1.4023/24 (+0.01%), Swissy 1.0509/10 (+0.09%), Cable 1.6172/74 (+0.03%), USD/JPY 90.15/19 (+0.17%).
EUR/USD trades with still bearish undertones, dropping off around 50 pips in earlier US trade. In early Asian session we are continuing to downside. Pair still under pressure and closely linked to ever widening spreads on Greek CDS. Market not overwhelmed by FED keeping rates a virtually zero and a slightly hawkish statement, appear both were priced in.
..Hourly charts show the pair is correcting slightly to the upside, yet trend remains bearish, supported by 20 SMA slope above current price. Bigger time frames also support the bias. Support levels: 1.4010 1.3970 1.3930. Resistance levels: 1.4045 1.4085 1.4120 , says Valeria Bednarik, collaborator at FXstreet.com.
The pair is down 30 pips from the open and currently trades at 1.3993, pressured Eur and strong Dollar combining to drag pair down.