The dollar fell sharply on Monday, tumbling to its lowest so far this year against a basket of currencies and the euro as optimism that the global economy is on the road to recovery continued to boost riskier assets.

Crude oil rose after Goldman Sachs Group Inc. said prices may reach $85 by the end of the year and extend gains in 2010 as demand recovers and supplies shrink.

Neutral Hourly Consolidation is seen as Price shows a Lock between the 1.4164 Daily pivot acting as Dynamic Support, and the 1.4230 Dynamic Resistance.
Slight RSI Readings and Slope at “49” look to subtle Bearish ness, as Price cutting through the Hourly 20MSA and Daily Pivot sees 1.4126 Dynamic Support in the Immediate-Term.

The updated June ECB staff forecasts came in mildly on the dovish side, and imply that the ECB does not see a return to positive growth before mid-2010, with inflation undershooting price stability throughout the forecast horizon.

Pair downside pressure sends it to test the ascendant trend line around 1.3945, where the pair quickly rebound to the upside. With indicators pointing for further loses and price under 20 SMA and 200 EMA in the hourly,

EURUSD – Our forex trading signals remain flat the Euro/US Dollar, as unclear trends in FX trader sentiment make it difficult to discern a strong sentiment-based forecast.

EUR. The pre-planned break-out variant for buyers has been implemented with loss in the achievement of anticipated targets.

-EURUSD – Euro Sentiment Forecasts Further EUR Strength
-USDJPY – Japanese Yen Forecast Aggressively Bullish Against US Dollar
-GBPUSD – British Pound Outlook Unclear on Sharp Sentiment Shifts
-USDCHF – Swiss Franc Expected to Rally Further Versus US Dollar
-USDCAD – Canadian Dollar Forecast Remains Bullish Against US Dollar