Markets were full of major market movers today from across the globe with the rate decisions from both the ECB and BoE and the data from the labor market in the US. The big Jobs report is on queue tomorrow and perhaps today was just a preview to what we should expect tomorrow with no near bottoming to be witnessed.
The 16 nation currency continued to decline today after statements from ECB president Mr. Trichet following the release of the rate decision where they decided to hold rates steady at 2.00 percent. The EUR/USD pair declined after recording the high for today at 1.2904 which is the 14 MA on the four hour charts to currently take the pair down to levels near the 1.2760 low for the day so far at 1.2770s. Although the MACD Traditional indicator is neutral on the daily charts, the cross over seen on the four hour charts is still pressuring the pair slightly to the downside. The ADX indicator is rather neutral.
The BoE cut rates today by 0.50 percent taking the overall benchmark to 1.00 percent inline with market expectations. As for the royal pound, the incline seen from the 1.4370s support level took the pair higher to currently test the resistance level at 1.4630 where if breached successfully could open the way for the pair to test the key resistance for the descending channel that has now shifted to the 1.48 level. However, that could be quite hard since technical indicators are showing low volume trading alongside the lack of enough bullish momentum to help the pair close above the mentioned resistance level on the four hour charts.
The Japanese yen was able to close above the 89.50 on the four hour charts to hit an intraday high at 90.06 but started to decline as the William's %R indicator started to show signs of the pair being overbought and is slightly adjusting to the downside. Although the OsMA indicator is showing the pair starting to lose the bullish potential, the Span A line of the Ichimoku cloud was able to limit further losses for the pair to show trading is really thin at the 89.80 levels. We can't clearly define the trend for the pair as it remains within a consolidated range yet the general trend is still to the downside.