FXstreet.com (Barcelona) - Dollar start the week with some good tone, supported by Federal Reserve Chairman Ben Bernanke that defended government actions being taken to shore up the banking system, saying that a recovery won't happen until the financial system stabilizes, in a televised interview. Bernanke also said that the Fed is effectively printing money rather than using taxpayer funds for these initiatives aimed at mortgage markets, commercial paper, asset-backed securities and other segments of the credit system. He also adds that when the economy begins to recover, that will be the time that we need to unwind those programs, raise interest rates, reduce the money supply, and make sure that we have a recovery that does not involve inflation.
EUR /USD - 4 hours charts are reversing past Friday rally, and indicators had lost strength, pointing for further downside movements. Capped under the 1.2880 zone, the pair needs to clear 1.2910 to the upside before further continuations. Next resistances will be at 1.2955 zone and above the 1.3000. Under 1.2834, supports will come at 1.2800, 1.2760 and 1.2720.
GBP/USD - Quoting around 1.3950, the pair is also tending bearish in 4 hours charts. CCI indicator is about to cross the 0.00 line, that if happens, could confirm the downside continuation. Supports from here will be at 1.3910, 1.3860, 1.3804 and 1.3773. Above 1.4010, consider resistances at 1.4066 1.4090 and 1.4140.
USD/JPY - Moving sideways, rumors off selling orders around 98.50 should contain the upside in actual session. Clear break above 98.80 is needed to see further upside movements to 99.20 and 99.65. Supports will be at 97.90, 97.38 and 96.90 zone.