Majors started this week consolidating

By IBTimes Staff Reporter | February 01 2010 1:02 AM

Majors starting trading today consolidating against the green currency, while optimism still spread in the market after fundamentals last week showed the U.S economy expanded 5.7% to beat analysts' estimates. The USDIX that tracks the dollar's strength against a basket of currencies rose slightly recording a high of 79.54 and a low of 79.38.

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The euro dollar pair is consolidating between 1.3900 levels and 1.3845 levels recording a high of 1.3887 and a low of 1.3852. The pair is currently trading around 1.3885 the lowest level in about 7 months, and momentum indicators on the daily and four hour charts are indicating the pair is trading in an oversold are, so it might take a correctional move this week to offset sharp declines we witnessed recently. However, the pair is having a support at 1.3830 along with a resistance at 1.4100.

Regarding the pound dollar pair, it is fell slightly recording a low of 1.5934 and a high of 1.5974, having the royal currency trading around 1.5960. The pair is having a support at 1.5945 along with a resistance at 1.6300, while the daily stochastic oscillator is supporting further declines, so we might see the pair breaching the support and trading near the 1.5900 levels. The British net consumer credit is on queue today that may affect the pair.

Finally, the dollar yen pair is consolidating between a high of 90.37 and a low of 89.98, and the pair is currently trading around 90.25. Today's support could be found at 89.10, while the resistance could be found at 90.80, and the daily stochastic oscillator is supporting the upside. Yet, Fundamentals concerning personal income in the U.S are on queue today that may affect the market.