Forex: Dollar retreats, investors take profits

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FXstreet.com (London) - Dollar pulled back today for the first time in five days, as investors took profits ahead of Christmas and the New Year. Negative new home sales today were enough to scare investors into banking Dollar profits and pulling down the Greenback across all its major partners.

Dollar shed gains across the board in the previous session, ahead of what will likely be an extremely thin Asian session. Nevertheless, during the opening minutes major Dollar pairs look like this: EUR/USD 1.4338/42 (+0.01%), Swissy 1.0389/91 (0.04%), Cable 1.5961/8 (+0.03%), USD/JPY 91.56/60 (-0.08%).

EUR/USD was relieved of some of its recent pressures and Dollar softened today. It came off 3 ½ lows back to trading at 1.4338 as we write. Investors will not quickly forget the fragile state of the Eurozones weaker nations.

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: Hourly charts show pair halted past sessions corrective upside movement exactly at the 14.6% of the last daily fall from 1.5132, with indicators exhausted to the upside. Still above 20 SMA, pair could extend the recovery to the 1.4410 area without losing the midterm bearish tone, as today U.S. negative data, could had been a good excuse just to take some profits of this new born trend.

The pair is trading tightly in range between 1.4323 and 1.4340, breakout either side of the range could signify a change to the neutral trend.

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