Dollar climbs after U.S. housing data

By IBTimes Staff Reporter | December 22 2009 10:57 AM

The greenback pared its earlier losses incurred today after the release of stellar U.S. housing data, providing evidence the U.S. economy will show strong recovery next year. The U.S. dollar slipped after GDP final reading dipped to 2.2% compared with estimates of 2.8%, but it rebounded again after the housing data. Meanwhile, the dollar index is trading at 78.19 after recording a low of 77.84.

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With regard to the euro-dollar pair, it is declining on the daily charts, floating further into an oversold area as indicated by the Stochastic Oscillator. The euro reversed back from a high of 1.4331 to the lowest in three and a half month low. Currently, the pair is traded at 1.4263 recording a low of 1.4258, whereas the coming support is at 1.4218 and resistance at 1.4305.

As for the sterling-dollar pair, it is showing continuing its downside trend on the daily and 4-hour charts after breaching support at 1.5980, which represents 76.4% Fibonacci retarcement to the upside trend that started on October 13, where it is currently traded at 1.5942 after setting a high of 1.6099 and a low of 1.5938; while the coming support for the pair is seen at 1.5900 and the resistance is spotted at 1.5980.

Relative to the dollar-yen pair, it inclined today on the daily and 4-hour charts after the strong U.S. data which lifted the dollar to 7-week high versus the yen. Now, the pair is trading around 91.84 after hitting a high of 91.86 and a low of 90.98; while the pair is currently facing the coming support level at 91.45 then 91.30, while the resistance is spotted at 92.00 then 92.30.