The green currency rebounded for the second day after three consecutive days of drop ahead of the release of PMI manufacturing later on today. Yesterday's optimistic confidence data gave an impetus to the dollar and it continued its rise today, versus a basket of major currencies as indicated by the dollar index. However, movements today, like the all trading this week, are in narrow ranges amid the year-end holidays.
The euro-dollar pair showeda slight decline on the daily and 4-hour charts in the absence of economic data from the euro zone, but it may rebound if the U.S. news came in line with expectations. The euro after rebounding for two days may continue its downside trend that started on December 4. Currently, the pair is traded at 1.4342 recording a high of 1.4360 and a low of 1.4305, whereas the coming support is at 1.4300 and resistance at 1.4410.
The sterling-dollar pair decliendon the daily and 4-hour charts after breaching yesterday the strong support at 1.5980, which represents 76.4% Fibonacci retarcement to the upside trend that started on October 13, which may pave the way to a fall to 1.5700 levels. The pair is currently traded at 1.5852 after setting a high of 1.5915 and a low of 1.5840; while the coming support for the pair is seen at 1.5790 and the resistance is spotted at 1.5897.
The dollar-yen pair slightly roseon the daily and 4-hour charts, but unable to breach resistance at 92.30. The dollar is gaining against the yen on speculations the FED will hike interest rate and withdraw stimulus early in the 2010 as the economy is showing strong recovery signs. The pair is currently trading around 92.21 after hitting a high of 92.26 and a low of 91.88; while the pair is currently facing the coming support level at 91.88, while the resistance is spotted at 92.55.