Ben S. Bernanke's decision to lower interest rates 1.25 percentage points last month will end the dollar's two-year slide, according to the world's biggest currency traders.

TECHNICAL OUTLOOK – DAILY CHARTS

EUR/USD

Resistance: 1.4966/1.5000

Support: 1.4590

Sentiment: mixed

GBP/USD

Resistance: 1.9825

Support: 1.9340

Sentiment: bearish

AUD/USD

Resistance: 0.9200

Support: 0.8765

Sentiment: bullish

USD/JPY

Resistance: 107.90

Support: 104.20

Sentiment: bearish

USD/CAD

Resistance: 1.0180

Support: 0.9760

Sentiment: mixed

USD/CHF

Resistance: 1.1120

Support: 1.0840

Sentiment: mixed

GPB/JPY

Resistance: 215.15
Support: 203.90
Sentiment: bearish

Fed Versus ECB

While two Fed cuts slashed the target rate for overnight loans between banks to 3 percent in nine days, the European Central Bank kept its benchmark rate unchanged at a seven-year high of 4 percent in an attempt to curb inflation. The ECB will keep rates unchanged at its Feb. 7 meeting, according to all 55 economists surveyed by Bloomberg News.

``If aggressive cuts by the Fed can stimulate the economy, then the U.S. will definitely lead the way in terms of economic recovery,'' Yu said. ``The ECB is behind the curve, so it's time to move back'' into the dollar, he said.

Deutsche Bank AG, the world's largest currency trader, predicts an 8 percent gain in the dollar this year as the euro- zone economy expands 1.6 percent, lagging behind the 1.9 percent growth projected for the U.S. For 2009, Frankfurt-based Deutsche Bank puts growth at 2.6 percent in the U.S. and 1.9 percent in Europe.