The US Dollar early on Tuesday the 31st of May has been losing ground against a basket of currencies except the Japanese yen. Investors seem to be cautious about the US economic recovery doubting the correctness of the monetary policy followed by Fed. The USDJPY step up on news that Moody’s places Japan on review for possible downgrade. After that news the USDJPY spiked up and found resistance at the 81.36 level. Against the Swiss Franc the US dollar is down trending reaching the 0.8461 support level yesterday and remains at around that level up to now. The Australian is also gaining ground against the US dollar reaching early this morning the 1.0754 resistance level. The forex pair is now trading at the 1.0710, pulling back from the highs of the week.
EURUSD
The EURUSD forex pair on Tuesday morning extended its gains and rose up to the 1.4404 and created there a resistance level, its highest in about 2-weeks. The Euro hit a 3-week high after a wave of short-covering triggered by a report saying Germany could make concessions on efforts to put together a bailout for Greece also was helped by that Moody’s put under possible downgrade the Japan. The Euro is now trading at the 1.4381 with the 1.4405 being a resistance level and the 1.4324 expected to hold any pull back down.
Support/Resistance 1.4324/1.4405
GBPUSD
The sterling was up to new highs for the last 3-weeks against the weaker US dollar rising early on Tuesday at the 1.6543 resistance level due to the negative sentiment on the greenback that prevails in the forex markets in the last trading sessions. The sterling has significantly outperformed compared to the Euro in the last three weeks. The forex pair has penetrated the 1.6510 resistance level and now support, is now trading at the 1.6541.
