The markets are showing signs that the major pairs are as easily holding support against the Usd than at any other time recently, and have 4 hour charts that now look as though they may be about to break higher against the Usd. Global equity markets have moved into the green by 3% and held, Wall Street futures trade is in the green, oil is lower, and the major pairs just have the U.S. 6-7am EDT reversal to get through ahead of what then may be a Usd negative session, and a Usd negative month that may lead to a Usd negative quarter.
The support/swing areas that we are looking to see price action at are 1.4550 on cable, 1.3250 on euro (subject to the ECB doing nothing other than cut rates as expected at 07:45 EDT), 0.7050 on aussie, and 99.30 on the yen said TheLFB-Forex.com Trade Team members.
The moves higher in Asian and European trade may need to be retraced before moving again, but the majors do look to have a bullish bias to them the they said. We do not have a decent read on swissy and cad at the moment, but the dollar index does look as though it is about to get sold. Traders need to be respectful of the impact of the 07:45 EDT rate decision from the ECB, but outside of that there looks to be a path to 80.00 support on the index over the coming weeks.