Dollar Mixed in Thin Trading

By IBTimes Staff Reporter | April 05 2010 1:14 PM

The U.S. dollar gained against major currencies in today's trading, as data from the U.S. economy signaled that the services sector continued to expand, while data from the housing market provided hope for investors, as pending home sales increased well above expectations. However, trading was rather limited today as markets in Europe and Asia are closed due to the Easter Holiday.

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The U.S. dollar continued to gain support after last Friday's jobs report signaled that the U.S. economy started to add jobs over a strong pace, though unemployment remained near its highest level since 1983 at 9.7%, but that was an encouraging sign for the future, as the labor market might be stabilizing after being on the receiving end of the worst recession since WWII.

The U.S. dollar index which tracks the performance of the U.S. dollar against six major currencies rose slightly in thin trading today to trade at 81.073 from the opening levels at 81.008 after recording a high of 81.301 and a low of 80.918, where the dollar was gaining against some majors and losing against others.

The Euro rose against the U.S. dollar in today's trading, where the pair opened today's trading at $1.3492 before setting a low of $1.3460, however the pair rebounded to set the highest level for today at $1.3538 while trading now at $1.3511. The pair is forming a bearish technical pattern, however the pair must breach the $1.3460 support level in order to confirm this bearish pattern, and accordingly so long as the pair remains above this level targets will be at the resistance located at 1.3565.

The British Pound also rose against the U.S. dollar in today's trading, where the pair opened today's session at $1.5257 to set a low of $1.5222 and rising afterwards to set the highest at $1.5319 while currently trading at $1.5290. The pair continues to move in bullish direction, where targets are now set at $1.5380, however the pair must continue to trade above the critical support level at $1.5180 in order for this scenario to prevail.

Finally, the U.S. dollar lost ground against the Japanese Yen in today's trading, where the pair declined in a correctional move after rising to the highest level in 7 months, where the pair opened today's session at 94.53 which was near the highest level recorded for today at 94.59, yet the pair dropped afterwards to set the lowest at 94.08 as its now trading at 94.12. The pair is expected to continue moving to the upside so long as the 94.00 level which represents the main support for the ascending channel remains intact, while the pair is targeting the 95.65 resistance now.