The green currency slipped against majors in the first day of trading in the New Year amid signs of recovery after the release of strong manufacturing data in China, euro zone, and U.K. which boosted demand on higher-yielding assets, whereas the upbeat U.S. ISM manufacturing could not lift the dollar to the upside. The dollar index, a gauge of the dollar's movements versus a basket of major currencies, slumped from 77.41 from a high of 78.18.
With regard to the euro-dollar pair, it is showing sharp incline on the daily charts after the better-than expected PMI manufacturing for December which provide clues the economy may expand further in the fourth quarter and in 2010. Movements are fast today due to low volume after the year-end holidays. Currently, the pair is traded at 1.4422 recording a high of 1.4450 and a low of 1.4256, whereas the coming support is at 1.4385 and resistance at 1.4460.
As for the sterling-dollar pair, it inclined on the daily charts but facing downside pressure from the 4-hour and 1-hour charts. The pair failed to remain above the strong resistance at 1.6150, which represents 61.8% Fibonacci retarcement to the upside trend that started on October 13. The pair is currently traded at 1.6118 after setting a high of 1.6239 and a low of 1.6056; while the coming support for the pair is seen at 1.6090 and the resistance is spotted at 1.6150.
Relative to the dollar-yen pair, it is declining on the daily and 4-hour charts, after doing 100% correction to the downside trend that started on October 27. The pair is currently reversing from an overbought area as indicated by the Stochastic Oscillator momentum indicator on the daily charts. The pair is currently trading around 92.20 after hitting a high of 93.21 and a low of 92.17; while the pair is currently facing the coming support level at 91.90, while the resistance is spotted at 92.60.