Majors starting a correctional move

By IBTimes Staff Reporter | January 25 2010 1:12 AM

Majors started trading this week taking a correctional move to the upside, after declining against the green currency last week. The USDIX the tracks the dollars strength against a basket of currencies fell in today's Asian session to record a low 78.11 and a high of 78.28, and it is currently trading around 78.20.

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The euro dollar inclined slightly recording a high of 1.4173 and a low of 1.4133, having the 16 nations' currency trading around 1.4165. The pair is taking a correctional move to the upside targeting the 1.4350 level before it start falling again. The stochastic oscillator on the daily and four hour charts is supporting the upside, and today's trading range shall be between 1.4050 and 1.4205.

Regarding the pound dollar pair, it is consolidating between 1.6130 and 1.6085 recording a high of 1.6121 and a low of 1.6093, and the royal pound it currently trading around 1.6115. The pair is having a support at 1.6100 along with a resistance at 1.6285. However, the pair is trading in an oversold area according to momentum indicators on the daily and four hour charts that make us expected the pair to incline heading towards the overbought area.

Finally, the dollar yen pair is currently consolidating around 90.10 recording a high of 90.26 and a low of 89.80. Today's resistance could be found at 90.55, while the support could be found at 89.60. Yet, fundamentals concerning the housing sector in the U.S are on queue today that may affect the market on release.