The dollar started this week consolidating against majors, this came after the Federal Reserve Chairman Mr. Bernanke said that the U.S economy is expected to grow by 1% in the second half of 2009, while unemployment is forecasted to exceed 10% before beginning to decline. The USDIX recorded 78.68.
The euro dollar pair is consolidating between 1.4230 and 1.4180 having the euro trading around $1.4224. The pair reached a high of 1.4235 and a low of 1.4175. Mr. Bernanke the Federal Reserve Chairman said today that he is expecting the U.S economy will grow strongly within few years, he also added that inflation will be quite low in the next few years. The pair is having a support at 1.4180 along with a resistance at 1.4240. The general trend is to the upside especially with the optimistic forecasts for new home sales in the U.S which is going to be released today, so the pair is expected to break the resistance level to target 1.4280. According to momentum indicators the pair is currently trading in an overbought area.
Regarding the pound dollar pair, it declined today recording a low of 1.6385 and a high of 1.6468. The pair went below the support level of 1.6500 to be traded around 1.6445 and today it is having a support at 1.6390 along with a resistance at 1.6475. There is an absence of fundamentals from the U.K and the pair is expected to breach the support level to have a next support at 1.6320. The stochastic oscillator on the four hours scale is indicating that the pair is trading in an oversold area.
Finally, the dollar yen pair declined slightly today recording a low of 94.66 and a high of 94.89.today the pair broke the 95.00 level to be traded around 94.75. The pair is having a resistance at 95.00 along with a support at 94.55 and according to momentum indicators on the four hours scale, the pair is heading towards an overbought area.