The U.S dollar gathered some steam, and gained back some of its losses yesterday on the New-York trading session, after President Obama said “the U.S currency is extraordinarily strong because investors are confident in the economy”. In addition risk appetite faded when stocks retraced on Tuesday.
EURUSD: finally broke under 1.35 marking a possible beginning of a serious correction to the downside, naturally putting an end to the extraordinary upward momentum we have seen last week.
It is time to reconsider all long positions on this pair, at least until we can spot some buying pressure in the market.
Notice the 1.3414 support level, this is the last stand before we drop back to the 1.33 area, if EURUSD will keep its head above it, we can still hope for a possible come back to 1.3550 this week. However, a clear break under could potentially moderate bigger selling pressure on the pair.
GBPUSD: the pound is still holding its ground against the dollar. After topping at 1.4781 the pair retraced a little over 100 pips, keeping its upward trend intact. The next serious support level is at 1.4440.
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