The euro consolidating after yesterday's gain

By IBTimes Staff Reporter | February 02 2010 1:27 AM

The euro and the pound are consolidating in today's Asian session, after we witnessed the euro gaining slightly yesterday to offset last week's sharp declines. The pound and the Japanese yen fell in yesterday's trades after fundamentals showed personal spending and the manufacturing sector in the U.S improved.

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The USDIX that tracks the dollar's performance against a basket of major currencies is consolidating between a high of 79.40 and a low of 79.16, while the index is currently trading around 79.25.

The euro dollar pair is consolidating between 1.3945 levels and 1.3875 levels recording a high of 1.3934 and a low of 1.3885. The pair is currently trading around 1.3925 and it may show further gains today especially that the pair is trading in an oversold area according to the daily stochastic oscillator after the euro reached a seven months low last week. The euro zone's PPI is on queue today that may affect the pair, and today's trading range shall be between 1.3800 and 1.4000.

Regarding the pound dollar pair, it is fluctuating between a high of 1.5973 and a low of 1.5918, having the royal currency trading around 1.5950. The pair is trading in an oversold area according to the daily momentum indicators, but the four hour stochastic oscillator is supporting the upside. The British retail sales will be released today, and the pair is having a support at 1.5800 along with a resistance at 1.5980.

Finally, the dollar is consolidating against the Japanese yen recording a high of 90.90 and a low of 90.57, and the pair is currently trading around 90.75. Today's support could be found at 88.45, while the resistance could be found at 91.00, and we shall see the pair inclining today according to momentum indicators on the daily charts.