Forex: Dollar firming, quiet trading likely this session

By IBTimes Staff Reporter | December 27 2009 7:28 PM

Dollar dropped off in the previous session, on what seemed to be profit taking as Dollar longs closed out ahead of the four-day weekend past. During the opening minutes in Asia today major Dollar pairs look like this: EUR/USD 1.4373/77 (-0.10%), Swissy 1.0375/78 (0.28%), Cable 1.5949/55 (-0.21%), USD/JPY 91.50/52 (+0.09)..

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EUR/USD rebounded form 3 ½ month lows last week, and has consolidated safely above this zone in the previous session and continues to do so now, currently trading just a few pips off from the open.

The pair now trades in a very tight range on what analysts describe as one of the quietest trading days of the year. Valeria Bednarik, collaborator at FXstreet.com guides us on the technicals: Pair opened slightly to the upside, still capped under 1.4380 area, first support for next hours, ahead of the 1.4420 area, past Friday's high, also 200 EMA in the hourly chart. With indicators slightly bullish, pair needs at least to confirm above this last to extend the upside during next hours. Under 1.4350 area, key support lies at 1.4320: if this last gives up, pair likely to resume down trend.

The pair is trading in a 10 pip range in the opening minutes between 1.4365 and 1.4375, breakout either side of the range could signify a change to the neutral trend.

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