As you may have noticed, Europe's stock markets are having a field day. Since the start of the year, the Euro Stoxx 50 has gained 12%, compared with less than 4% for the United States. Interestingly, the EURUSD hit a low in mid-January and has since stabilized. Coincidence? Hard to believe, since fast money is often the precursor to major moves in other asset classes. The reason is simple: if you want to invest in the Eurozone, you need to hold the currency in question.

As a result, many cross-dollar currencies have come back to test important levels. The EURUSD is close to its January highs at 1.05. While 1.0177 remains the key support, an interesting intermediate level to watch is 1.04. In other words, if this threshold holds up, we could envisage a bullish acceleration towards 1.0680/1.0700. Sterling is already a little ahead (i.e. it's already moving in the right direction), while we'll be watching the 0.8965 mark on USDCHF to confirm a downward trend reversal. The equivalent point on USDJPY is 150.66.

On the commodity currency front, the same was true. USDCAD confirms hopes of consolidation towards 1.3980/1.3860. AUDUSD has just breached resistance at 0.6300, paving the way for a significant rebound towards 0.6500. In parallel, the NZDUSD is trying to break above 0.5730 to open at 0.5845. In view of the momentum, however, we prefer the Aussie.

A few weeks ago, we alerted you to a potentially interesting configuration on EURGBP in the following terms: "[...] EURGBP is testing symmetry at 0.8466/90. In other words, we'll be on the lookout for any sign of weakness around this resistance to take a short position on the cross." If you've been following the movement, you can let yourself be carried towards the lows at 0.8223.