Majors started a correctional move

By IBTimes Staff Reporter | February 09 2010 1:01 AM

The euro and the pound took a correctional move to the upside in today's Asian session, after sharp declines we witnessed during last week. Yesterday the market was fluctuating especially with the absence of fundamentals from major economies, but today we are having the German CPI and the British trade balance on queue that will affect the market.

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The USDIX that tracks the dollar's strength against a basket of major currencies fell in the Asian session to record a low of 80.10 and a high of 80.44, while it is currently trading around 80.20.

The euro dollar pair inclined to record a high of 1.3719 and a low of 1.3648, having the union currency trading around 1.3705. The pair started taking a technical move to the upside yesterday and today it is extending its gains, having the four hour momentum indicators supporting the upside. Today's trading range shall be between 1.3600 levels and 1.3740 levels.

As for the pound dollar pair, it gained slightly recording a high of 1.5630 and a low of 1.5567, having the royal currency trading around 1.5625. The pair is having a resistance at 1.5720 along with a support at 1.5500, and the pair is trading in an oversold area according to the daily stochastic oscillator that makes us expect further inclines today.

Finally, the dollar gained against the Japanese yen to record a high of 89.48 and a low of 89.20, and the pair is currently trading around 89.40. The stochastic oscillator on the daily charts is supporting the downside, and the pair is having a resistance at 89.90 along with a support at 88.50. Yet, the U.S wholesale inventories will be released today and it might affect the pair.