The currencies market is consolidating amid an absence of traders due to holidays, and the dollar settled at the highest level in two months against major currencies. Optimism remain founded in the market, since the Fed's said it may withdraw stimulus measures soon, giving signs that the U.S economy is recovering from recession.
The Euro still trading around 1.4370 against the dollar, after narrow trades witnessed yesterday. Trading volumes remain weak that makes us expect the union currency may not be able to reach its forecasted targets this week. The euro is trading below the resistance level of 1.4500, while the short term target may be at 1.4110. However, the pair recorded a high of 1.4374 and a low of 1.4353.
The pound dollar pair is trading around 1.6000, and it is trading below the resistance level of 1.6040. This came after the royal currency rose yesterday from 1.5940 to 1.6000. Yet, the royal pound is anticipated to decline over the short term to reach 1.5700, but the current trading volume we witness may not support the downside. The pair recorded a high of 1.6013 and a low of 1.5994.
Finally, the dollar yen pair still trading around 91.60, and momentum indicators on the daily and four hour charts says the pair is trading in an overbought area, that may pressure the pair to fall back below the 91.00 level, and it may be followed by further declines to the 90.70 levels. The pair recorded a high of 91.77 and a low of 91.62.