FXstreet.com (London) - Major US indices pulled back as trade drew to a close last week. US equity market sustained loses was JPMorgan, the US investment bank, posted lower than forecast revenue streams. The lower stream triggered nervous investors to move away from risky assets classes and the three major US indices posted losses of around 1%. Nikkei has played catch-up with NewYork in early trade gapped open to the downside around 70bps.
In early Asian trading the Dollar was flat across its major pairs today, broad picture looks like this: EUR/USD 1.4372/77 (+0.12%), Swissy 1.0276/85 (+0.03%), Cable 1.6276/79 (+0.10%), USD/JPY 90.88/92 (0.14%).
EUR/USD traded consistently downwards on Friday dropping over 125 pips in 24 hours trade. Dollar strength combined with fears over the Greek economy and the ability of its government to right the wrongs, forcing the pair down.
With indicators bearish yet showing downside rally a bit overextended and under 20 SMA still with a nice bearish slope, pair needs to break under 1.4335, past Friday's low to accelerate to the downside. says Valeria Bednarik, collaborator at FXstreet.com, Wall Street fall past Friday could weight on local markets and favor greenback in the cross. Support levels: 1.4335 1.4300 1.4260. Resistance levels: 1.4400 1.4440 1.4480 .
The pair is down just 8 pips from the open and currently trades at 1.4361, extending the downtrend of last Friday.