FXstreet.com (London) - The three major US stock markets all took significant losses today, with the Dow, S+P and NASDAQ all losing over 100 bps. Down move has been largely driven by doubts around China and their recent credit tightening moves. Nikkei has followed suit gapping down around 30bps.
In early Asian trading the Dollar was flat across its major pairs today, broad picture looks like this: EUR/USD 1.4404/08 (+0.15%), Swissy 1.0242/45 (-0.04%), Cable 1.6364/69 (+0.15%), USD/JPY 90.48/58 (-0.33%).
EUR/USD traded in a very tight band during the past US session, around the 1.4110 level. Dollar returned slightly to favour as investors moved into safer asset, reflected in the gentle down move throughout the day. Pair is unchanged since the open.
Pair opened current session under the 38.2% retracement of past 2009 upside rally, measured from March low of 1.2456 to November high around 1.5143, turning that level, 1.4120 into the first resistance level for current session. Hourly charts continue to show indicators in oversold territory, says Valeria Bednarik, collaborator at FXstreet.com.
The pair is up just 1 pip from the open and currently trades at 1.4113, as thin trade continues in early Asian trade.