The American Dollar renewed its fall against all major currencies yesterday after stock market performance, and rising oil prices enhanced investors demand for risk.

When investors are becoming more optimistic about the future condition of the global economy, they feel less need to hold the dollar, resorting to more high yielding currencies such as the Australian and New Zealand dollars, currencies which clearly became  flooded with demand recently.

Trading EURUSD was quite a bumpy ride the last few trading days, the pair was topping last week around 1.4333 , then reversed in the beginning of this week to  bottom around 1.3804. Since yesterday however, the revived optimism has pushed the pair above its 1.4 psychological resistance once again.

This morning EURUSD is trading a bit under its next resistance 1.4104, with a clear break above probably sending us to meet the higher ends of 1.41 in the coming days. However, a failure to move higher than 1.4 - 1.41 till the end of the week might signal uptrend momentum is demising.

Z.Georgi

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