The dollar jumps on technical movements ahead of the NFP report

By IBTimes Staff Reporter | January 07 2010 10:08 AM

The U.S. dollar rebounded from yesterday's drop ahead of the release of the infamous U.S. jobs report tomorrow after breaching 77.80 where it faces strong resistance, according to the dollar index, a gauge of the dollar movements versus a basket of major currencies, which rose today to 77.94 from yesterday's closing at 77.46. Analysts are expecting the greenback to continue its upside trend that started in December.

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With regard to the euro-dollar pair, it is showing a decline on the daily charts, but showing slight incline on the 4-hour and 1-hour charts. The euro zone released today its confidence report which showed improvement but it was offset by the unexpected fall in retail sales. Meanwhile, the pair is trading at 1.4334, recording a high of 1.4446 and a low of 1.4298, while it is facing the coming support at 1.4275 while resistance is seen at 1.4385.

As for the sterling-dollar pair, it is also declining on the daily charts, after breaching support at 1.5980. Today, the BoE members left both interest rate and APF quantity unchanged from December, cementing market expectations, but the news did not impact the pound. The pair is currently traded at 1.5925 after setting a high of 1.6058 and a low of 1.5893; while the coming support for the pair is seen at 1.5915 then 1.5830 and the resistance is spotted at 1.5985.

Relative to the dollar-yen pair, it is inclining on the daily and 4-hour charts after the announcement of the new Japanese Finance Minister that he wants weaker yen. Now, the pair is unable to breach resistance at 93.18 where it is currently traded after hitting a high of 93.40 and a low of 92.08; while the pair is currently facing the coming support level at 92.45, while the resistance is spotted at 93.65.