Consolidation dominates the market

By IBTimes Staff Reporter | February 03 2010 1:05 AM

Consolidation dominated today's Asian session amid a lack of fundamentals from Asian economies. The euro is trading around the 1.3975 levels since the beginning of this week and today wee are having a number of fundamentals from the euro area that may move the market.

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The USDIX that tracks the dollar's strength against a basket of major currencies is fluctuating between a high of 79.06 and a low of 18.94, while it is currently trading around 79.05.

The euro dollar pair fell slightly in today's Asian session recording a low of 1.3945 and a high of 1.3976, having the 16 nations' currency trading around 1.3960. The pair rose slightly yesterday and it is anticipated to keep inclining today, as the pair is heading towards an overbought area according to the daily stochastic oscillator. The pair is having a support at 1.3925 along with a resistance at 1.4000, and the euro zone's PMI services and retail sales will be released today to move the pair.

Regarding the pound dollar pair, it is consolidating between 1.6010 levels and 1.5955 levels recording a high of 1.6004 and a low of 1.5966. The pair is currently trading around 1.6000 levels and the pair might show a slight gain today especially with the four hours and daily momentum indicators supporting the upside. The pair is having a resistance at 1.6055 along with a support at 1.5800.

Finally, the dollar yen pair still trading around the 90.50 levels recording a low of 90.29 and a high of 90.55. Today's resistance could be found at 91.10, while the support could be found at 89.90, and the daily stochastic oscillator is supporting the upside. Yet, data concerning the labor market in the U.S is on queue today and it might move the market on release.