The dollar remained weak against the euro and the pound Monday morning after the U.S. government officially announced plans to buy at least $500 billion in bad assets to help stabilize the banking system.
Forex: EUR/USD: Euro, below 1.3535 support level; 1.3415 aheadFITITOL–>FXstreet.com (Barcelona) – The Euro has been rejected by the 1.3735 resistance level and has dropped more than 200 pips afterwards reaching below 1.3535 support level at U.S. session opening time.
If the confirms its decline below 1.3535, next support level comes at 1.3415 (Mar 19 low) and below here 1.3330 (Feb 27 and 28 high). Once broken that last support,, 1.3070/85 could be next support level.
On the upside, rebound at 1.3535 level, should expand above 1.3610 resistance and once above here a new test to 1.3735 could take place. In case of breaking above 1.3735, buying pressure could drive to a test of 1.3825 (Dic 19 low), and then 1.3900 (Dic 23 low).
US Feb Existing Home Sales rise a 5.1%, reaching 4.72MFITITOL–> FXstreet.com (Barcelona) For more information, read our latest forex news.
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Forex: GBP/USD: Pound drops from 1.4600 down to 1.4500FITITOL–>FXstreet.com (Barcelona) – The Sterling has been unable to hold above 1.4600 and it has dropped about 100 pips on early U.S. session to levels around 1.4500.
On the downside, below 1.4500, next support level comes at intra-day low at 1.4395 and below here Below there, 1.4338 (Mar 18 high) and 1.4230 (Mar 16 high). On the upside, resistance level remains at 1.4600 and above here, 1.4665, and 1.4710 (Feb 23 high); then 1.4750 and 1.4850.
According to Valeria Bednarik, collaborator at FXstreet.com, the pair remains slightly bullish in hourly charts: “the pair remains slightly bullish in the hourly, supported by an ascendant trend line and the 20 SMA. Momentum is giving some bearish divergences that can send the pair to test the mentioned line. Need to see a clear detach of the 1.4550/1.4630 zone for further rallies.”