Markets Maintain The Bullish Stance

High-yielders maintained the strong note against the greenback after Bernanke kept the door open for further stimulus. The EUR/USD traded above the key short term resistance at 1.3220, printing a daily high at 1.3263, however it's currently hovering around 1.3220. The 50-days moving average is also forming good support around 1.3200. Thus, maintaining stability above 1.3210-1.3220 could push the pair to continue the upside bias towards 1.3270 again followed by 1.3300 and 1.3380. However, Stochastic is signaling a bearish divergence, thus failure to sustain the bullish momentum and dipping below the ascending trend line around 1.3170 shall turn the intraday bias into bearish eying 1.3100.

The British pound maintained the rally, where it managed to break above the major resistance at 1.6165 in addition to the ascending resistance of the rising wedge pattern. However we need at least a daily closing above this key long term level to confirm further upside, as steady trading above 1.6150-1.6165 will extend the short term targets to 1.6300. Thus, major level to watch today at 1.6165-1.6150.

USD/JPY continues to trade within the descending channel, and dipped below 80.85-80.90 support level, thus we may see further downside action towards 80.20. 81.20 should cap any rallies today for the bearish bias to remain intact.

Gold rebounded heading towards the top of the main descending channel, however it's facing a resistance at 1655.00-1658.00 area, followed by the descending resistance of the channel, thus only a break above this resistance at 1665.00 will confirm further upside eying 1700.00 mark again. 1640.00 should halt any downside attempt otherwise we may see retest of 1630.00.