The US dollar demonstrated a significant recovery during the European session on Wednesday, contributed to the greenback’s strength against other major European currencies ahead of the U.S. session.
The euro seemed to lose its dominant upward direction in recent days after the break of 1.2520 trend line on the 4 hour chart, but did not reach the 1.25 support, at least until the day time. From that point we can see a rapid recovery, and the single currency is trading in a bullish mood now above 1.2600.
The pound is more stable with a moderate uptrend, but with a strong resistance at 1.5910 which was not clearly could not overcome in recent days. The RSI and momentum indicators show significant bullish signals.
As the Australian dollar leaves the gap created on Monday at 1.0330, and breaks 1.02, support level seems to be difficult to beat. Strong pessimism in Australia due to of the Chinese economy slowdown, and even as the fact that the Reserve Bank of Australia did not cut the interest rate saved the Aussie bearish force.
The Canadian dollar and the Mexican peso are closely connected to oil prices. The yen has no changes of any kind; it is anchored to 1.20 to the euro.
There are not many changes. The ISM manufacturing shed 49.6 points, which hit hard after the actions of Wall Street (the Dow Jones index futures recover right now, before the opening of the American session on Wednesday).
The most interesting part of the week starts tomorrow with data that will move the entire market: the ECB monetary policy, Mario Draghi’s speech later; the Bank of England monetary policy (which will have an impact on the pound mostly).

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