Majors started the first trading day of the New Year declining

By IBTimes Staff Reporter | January 04 2010 1:05 AM

The euro and the pound started the first trading day in the New Year on a decline against the green currency, after investors started turning back to the currencies market ending the holiday season. The USDIX started this year gaining slightly to record a high of 78.18 and a low of 77.94, while it is currently trading around 77.96.

Sponsorship Link

The euro dollar pair declined in today's Asian session recording a low of 1.4256 and a high of 1.4319, having the union currency trading around 1.4310. The pair is targeting the 1.4100 levels on the medium term and it is having a support at 1.4240 along with a resistance at 1.4355. Momentum indicators on the daily charts are supporting the downside and the pair if the pair breached the support it may fall back to the 1.4180 from where it will drop to the 1.4100 levels. The euro zone's PMI manufacturing will be released today that may affect the pair's trades.

Regarding the pound dollar pair, it dropped recording a low of 1.6069 and a high of 1.6146, having the royal currency trading around 1.6095. The pair is having a support at 1.6035 along with a resistance at 1.6130, and the four hour momentum indicators are supporting the downside, which means we may see further declines today. However, The British economy will release the PMI manufacturing that will affect the pair.

Finally, the dollar yen pair is consolidating between 93.10 and 92.65 recording a high of 93.06 and a low of 92.71, having the pair currently trading around 92.85. Today's support could be found at 92.50, while the resistance could be found at 93.15, noteworthy that the pair is trading in an overbought area according to momentum indicators on the four hour charts. Yet, ISM manufacturing in the U.S is on queue today that may move the market.