Investors may have overreactedto the dovish comments yesterday from the Fed's head, Mr. Bernanke reiterated that accommodative policies are needed as the recent improvement seen in the labor market remains unconvincing . However the overall tone hasn't changed, while there is an obvious improvement in the pace of economic expansion. Thus concluding further easing on the horizon may be hasty.

CB consumer confidence fell slightly last month from 70.8 to 70.2, which came also near market expectations of 70.3.

width=100

The greenback continued to lose grounds against higher yielder this morning before regaining some of the losses seen, where the EUR/USD pair topped at 1.3385 before printing a daily low at 1.3319. Downside pressure is seen over the four-hour chart above; where the ascending resistance managed to halt further incline, a test of the breached resistance and neckline of the inverted head and shoulders pattern -we mentioned yesterday- around 1.3280-1.3300 is probable now; before attempting to the upside again. Stochastic has crossed over negatively and attempting to leave overbought area supporting the current bearish correction.

width=100

The GBP/USDtested the resistance and the top of the range bound at 1.6000 psychological level, where it's currently hovering below the level, meanwhile Stochastic is within overbought territory. We mentioned yesterday that this level should form a strong resistance in the near term, where for any bullish move to be sustained a clear breach with multi-day of trading above the level is required. Another downside attempt from this area seems probable to retest initially 1.5915 support level. While above 1.6000; 1.6100 and 1.6150 are the main stops.

width=100

The USD/JPY rallied yesterday; breaching the resistance area among 83.00-83.20 and the 200-hours Simple moving average. If we witness multi-hours of trading above this key level now the door shall be open towards continuing the bullish trend towards the highs at 84.00 and 84.50 area. To the downside 83.00 should be the ground for any downside pullback , while a dip below 82.60 shall invalidate the short term bullish bias to 81.95 support.

width=100

Gold maintained the rally after breaching the double bottom pattern we mentioned yesterday, Price is extensively overbought as seen on Stochastic , meanwhile, trading nears the 50-days SMA and above the 200-days SMA, thus if the shiny metal manages to hold above 1683.00; the rally may extend to retest the 50 days average currently around 1708.00. On the other hand trading back below 1683.00 may push the commodity to retest the breached neckline around 1669.50.