By: Bastian Rubben
The US stock markets closed a red trading day yesterday in spite surprising GDP data. The negative correlation between the American dollar and the stock markets helped the USD to strengthen against the major currencies, though the bullish momentum in Wall Street might return any moment and this will probably have a negative influence on the US dollar.
The ECB transferred 530 billion Euros to the EU banks in order to ease the credit problem, but this did not help the European currency to continue the strong momentum it had against the USD and it failed in breaking through the resistance at 1.35. Many traders were waiting for the EUR to correct after the amazing rally that started on mid February and the correction might erase more up to 60% of this rally, meaning that the price might slide under 1.32 before a bullish reversal occur.
The CHF is another currency that has been strengthening against the USD during the recent weeks and after sliding almost 200 pips since the break-down at 0.91, the pair reached the support at 0.893. The target for this session is the 200 SMA at 0.88, though the USD might correct and retest the break-down level before the pair resumes sliding.
