The bullish dollar wave continues to dominate the market as greenback extends its gains versus majors; it managed to continue to extend the bullish wave that started on Friday and trades higher now versus the most active 16 currencies; the dollar index, which weighs its strength versus six major currencies, is trading around 75.85 insuring the upside wave which was powered after Friday's jobs report.
The fundamentals are not heavy today, as we saw the Sentix Consumer Confidence from Europe which reflected a slight improvement, and later into the session we have US consumer credit to be released; yet the focus will be on Bernanke which is expected to speak in Washington.
The euro declined from 1.4904 today to set its lowest at 1.4752 as the declined halted near the major support which resides at 1.4740, which is the suggested target in today's technical analysis.
Sterling was hammered by a new selling wave against greenback; the royal pound is already suffering heavy weakness and the gains it witnessed was merely a reflection to the then fragile dollar, and as greenback regained its appeal sterling crumbled in face of the federal hurricane. Sterling declined from its highest set today at 1.6514 to reach the lowest at 1.6327 and trading is still biased to the dollar's favor as still the pair is trading below the marginal 1.64 areas. The pair is trading among 1.6335 support and the 1.6405 resistance and high volatility might be seen due to the heavy selling saturation over intraday basis accompanied by the prevailing dollar strength.
Despite the slight rise seen by the Japanese yen, we still see that the pair is trading among its highest recorded levels this month, as the pair is trading today among 89.67 and 90.36. The pair was biased to the downside in a correctional move, yet we can see that Moving Averages over 4-hour basis still support the upside direction as far as trading is above 89.45 and the short term bullish direction remains valid and we do not exclude the possibility for a downside correction shall the pair failed in trading above 90.80.