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Bulls did manage finally to break trend line, however below 1.4048 price level bears are still in good shape. Despite this bulls attempt to climb higher, bears are controlling the current situation. Look for selling possibilities below this barrier, but it should be done with a care for now.

The JPY rose off earlier lows against the majors and the AUD slid on Tuesday after Australia's central bank put the country's interest rates on hold, surprising investors who had been preparing for a rise in rates.

Continuing investor worries over the fiscal deficits in European nations, especially in Greece and Portugal, pushed the single currency Euro lower against the British Pound Sterling. As reported at 1:19 pm (JST) in Tokyo, the Euro was trading at 87.25 Pence down from yesterday’s late New York trade of 87.42 Pence.

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The technique of post-trading Forex news is based on the fact that once the market has made up its mind about the impact of a major news item, it eventually hones in on its preferred direction. This method has the advantage that you do not subject yourself to the emotional drain that can result from pre-trading news.

The EUR/USD's daily chart shows a lapse in the dollar's recent rise to power. This will likely be corrected by the two high powered news items that are released on the 3rd.

Many analysts had predicted that the Reserve Bank of Australia (RBA) would increase the cost of borrowing by a further quarter percentage point when its board met this week. Australia was the only developed nation not to slip into formal recession during the recent economic turmoil and it was the first country to increase the bank interest rates and has made three increases since October 2009.

As mentioned Sunday, EUR/USD tested our LT targets at 1.3852 and has held there for now. The next resistance level should be at 1.3988, with a ST cycle completion target of around 1.4115. ST support should be at 1.3938 and 1.3911.

Negative trend remains strongly active. However, according to recent bulls attempt, they showed first signs of recovery. At the moment waiting action is better option in order to confirm bulls strength. If a trend line is broken, bulls have a chance to slide above 1.4048 price level.

The President of the United States revealed his government’s budget plans for 2011. Although the USA has formally left recession and is growing again, there is near universal agreement that the recovery is very weak and that there is still a significant risk of further job losses.