Majors consolidating amid an absence of fundamentals

By IBTimes Staff Reporter | January 18 2010 1:57 AM

Major currencies are consolidating in the first trading day of this week. The USDIX is consolidating between a low of 77.17 and a high of 77.38, and the index is currently trading around 77.24. Today the market will be moving on technical bases amid an absence of important fundaments and the holiday in the U.S.

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The euro dollar pair is consolidating in today's Asian session, between 1.4390 levels and 1.4325 levels recording a high of 1.4386 and a low of 1.4334, while the pair is currently trading around 1.4385. The one hour and four hour stochastic oscillator are supporting the upside, so we may see the pair gaining slightly today. However, the pair is expected to be trading between a support of 1.4315 and a resistance of 1.4435.

Regarding the pound dollar pair, it is trading between a low of 1.6249 and a high of 1.6317, having the royal pound trading around 1.6300. The pair is trading in an overbought area according to the daily momentum indicators, so we may see a slight decline today, and then the pair would resume gaining targeting 1.6550. Yet, the pair is expected to be trading between 1.6280 levels and 1.6345 levels.

Finally, the dollar yen pair is fluctuating between a low of 90.70 and a high of 91.05, and the pair is currently trading around 90.90. The pair may incline today after a series of drops, especially that momentum indicators on the daily and four hour momentum indicators saying the pair is trading in an oversold area. Today's trades shall be between a support of 90.35 and a resistance of 91.85.