As the U.S session came to a start, equities opened steady with upside bias, trailing rising European equities and indices futures. Demand for risk is still high and with the lack of major U.S fundamentals in the early session, investors are locking in on the sentiment ahead of the Feds Beige book that might detail further measures to be taken by the Feds. The dollar continued weak today ahead of Obama's scheduled address to Congress where he is expected to talk about the health care plan that has been agitating the nation and rocking its cradle.
The euro continued to trade to the upside trading 1.4550 levels slightly off its earlier highs recorded today at 1.4583; the pair's intraday upside move is capable of extending once it consolidates above current areas to head higher where momentum indicators provide the capability for the move to extend yet not that strong as Stochastic provided a bullish crossover yet RSI is trading near 70 reflecting the possible weakness for the move; the pair will continue to the upside supported by 1.4470-60.
Sterling is trading to the upside after the consolidation which was biased to the downside to gather momentum; the pair is currently trading around 1.6550, attempting to breach the sold area ahead around 1.6560 which if breached can extend the upside move towards 1.6600-20; Stochastic is bullish over intraday basis as seen over hourly basis and is providing signs of a bullish crossover yet not confirmed over four-hour basis. The 1.6480 (10 4H MA) followed by 1.6440 are supporting the upside move as well.
The dollar versus the Japanese yen continues to trade mixed where it continued the negative pressures upon 92.00, and the pair was capable of breaching it to head towards 91.60s; the breach needs to be confirmed with closing below that level, Stochastic is providing sings of a negative crossover as seen over four-hour basis.