DowntownForex

Euro and Pound at Resistance Levels

FXstreet.com (Barcelona) – U.S. markets have opened on a moderately positive pace on Tuuesday amid cautious trading ahead of details of which U.S. large banks will repay Government’s TARP funds. Euro and Pound have picked up to resistance levels regaining some of the ground lost in recent declines.

Dow Jones Industrials index edges up 0.17%, while the Nasdaq index rises 0.77%, and the S&P Industrials Index trades 0.20% above its opening level.

Shares of American Express and J.P. Morgan Chase have risen as investors expect them to be among the first banks to return TARP funds. U.S. Treasury Department expects an initial repayment of at least $50 billion of the bailout funds, twice as much as initially expected.

Euro and Pound at resistance levels

EUR/USD has bounced at 1.3850 support and after breaking intra-day resistance level at 1.3935, the pair has tested 1.4000 resistance level, which remains intact so far although the Euro trades at levels right below there.

GBP/USD has bounced at levels around yesterday’s high at 1.6100 to reach levels above 1.6200 resistance line, hitting a new high around 1.6220, where the 50% retracement level of Friday-Monday decline lies.

USD/JPY attempt to creep higher has been capped at 98.40 and the pair has lost about almost 100 pips, as the Dollar trades around 97.50 level on early U.S. session.

1.3982/84 (0.58%)

H 1.4024 L 1.385

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