Analysts project the dollar to lose momentum

on January 13 2010 1:28 PM

Investors await the release of Fed's beige book where it is expected to show the improvement witnessed in the manufacturing, housing and services sectors, in addition to slight improvement in economical conditions in the labor sector. Therefore due to these expectations the world's leading currency lost its ground against major currencies whereas the pound continued to ascend for the fourth consecutive day, which is the longest run of gains in two months.

The U.S Dollar Index; which measures the performance of the Green Benjamin against a six major currencies including the Euro, Pound and Yen declined from the opening levels of 76.991 to trade at 76.831 after reaching the highest levels for today at 77.155 and the lowest at 76.601.

The euro-dollar pair ascended throughout today's trading session where it can be seen on the daily scale; meanwhile the pair is dropping on the four hour scale targeting the support levels at $1.4491 and at $1.4478. the bullish trend is expected to continue throughout trading as the Federal Reserve Beige Book will help the Euro to gain against the Dollar. The pair's trading so far at $1.4503 where it managed to reach the highest levels for today at $1.4579 and the lowest at $1.4454 as for the upcoming support and resistance levels they can be witnessed at $1.4450 and $1.4565 respectively. The general trend is to the upside as far as 1.4035 remains intact with targets at 1.6000, as for the trading range for today its among the key support levels at $1.4300 and the key resistance at $1.4675.

As stated above the sterling-dollar pair continues to incline where it managed to achieve trading near the resistance levels at $1.6316 but slightly dipped to currently trade at $1.6264 as the pair attempts the breach the important key resistance levels that can be witnessed at $1.6293 as they stand for the 50.0 Fibonacci level. The pair is expected to continue its bullish momentum as the market moves towards an overbought area on the MACD and the RSI Oscillator. The trading range for today is set among the key support and resistance levels at $1.5965 and 1.6410 respectively whereas the general trend for trading is to the upside as far as $1.4840 levels remains intact with targets at $1.7200. the pair is currently trading at $1.6259 as it managed to reach the highest levels for today at $1.6306 and the lowest at $1.6134.

Finally talking about the USDJPY pair, it managed to rebound after falling for three straight days where the pair returned to trade within the ascending channel as it failed to breach the support levels at $90.83, meanwhile the pair is attempting to breach the resistance levels at $91.60 as it currently trading near those levels at $94.49. The pair managed to reach the highest levels at $91.53 and the lowest at $90.88. The trading range for today is among the key support at 89.75 and the key resistance at 92.10 while the general trend is to the downside as far as 102.60 remains intact with targets at 82.60.

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