Majors continue weakening against the dollar during the Asian session

By IBTimes Staff Reporter | April 16 2010 3:33 AM

The major currencies weakened further against the greenback during today's Asian session, as the dollar index traded between the highest 80.67 and the lowest 80.53. The index now trades at 80.63. The US economy will release today the building permits and the housing starts expected to witness some improvement. We will also witness the release of the preliminary reading of the University of Michigan consumer confidence, which is also expected to rise, thereby possibly leaving an impact on the dollar's movement.

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The euro traded within a narrow range against the greenback with some downside bias, between the lowest 1.3531 and the highest 1.3566. The pair now trades around the 1.3538 level, and between the 1.3525 and 1.3590 levels. Europe will release today the trade balance, which is expected to show narrower deficit, and the consumer price index which is expected to show some rise in prices. The hourly momentum indicators show the pair is within an oversold area, while the 4 hours indicators show the pair rebounded from an oversold area, and the daily indicators show the pair rebounded from an overbought area. The pair is expected to trade today around the 1.3670 level which if breached the pair might target the 1.3655, yet if the pair breaches the 1.3500 level the pair might target the 1.3410 level.

The pound also traded within a narrow range against the greenback with some downside bias, between the lowest 1.5410 and the highest 1.5460. The pair now trades around the 1.5434 level, and between the 1.5380 and 1.5450 levels. The one-hour momentum indicator show the pair rebounded from an oversold area, while the 4 hours and daily indicators show pair rebounded from an overbought area. The pair is expected to trade today around the 1.5500 level which if breached the pair might target the 1.5555, yet if the pair breaches the 1.5325 level the pair might target the 1.5295 level.

The dollar/yen pair still moves during the Asian session between the lowest 92.58 and the highest 93.11. The pair now trades at 92.76, and between the 92.55 and 93.00. The hourly and daily momentum indicators show the pair rebounded from an oversold area, while the 4 hours indicators show the pair is trading within an overbought area. The pair is expected to trade today around the 93.25 level which if breached the pair might target the 93.60, yet if the pair breaches the 92.15 level the pair might target the 91.70 level.