Narrow ranges and low volume for majors during the Asian session

By IBTimes Staff Reporter | May 31 2010 2:43 AM

Majors traded in narrow ranges against the US dollar during today's Asian session with some upside bias. The dollar index traded between the highest of 86.72 and the lowest of 86.48. Now the index trades around the 86.61 level. The US markets are closed today for the memorial day, while the UK markets are closed for the spring holiday, therefore volume will be limited, the currencies market might move more technically than fundamentally. Europe will release today its M3 money supply as well as the CPI flash estimate expected to rise in Mat to 1.7%, and some confidence indicators where the business climate is expected to fall to 0.20 in May from the previous 0.23.

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The euro against the dollar traded during the Asian session between the highest of 1.2334 and the lowest at 1.2282. Now the pair is trading around the 1.2307 level, between 1.2260 and 1.2365. The hourly momentum indicators point that the pair might rebound from an overbought area, but the four hours indicators point to a positive crossover within an oversold area. As for the daily indicators show the pair might rebound from an oversold area. The pair today may trade around 1.2480 if it breaches the 1.2420 levels, and may trade around 1.2135 if it breaches the 1.2205 levels.

The pound against the dollar traded between the highest of 1.4504 and the lowest of 1.4425. Now the pair is trading around the 1.4479 levels between 1.4405 and 1.4520. The hourly momentum indicators point that the pair might rebound from an overbought area, but the four hours indicators point to a positive crossover within an oversold area. As for the daily indicators show the pair might witness a negative crossover within an overbought area. The pair today may trade around 1.4655 if it breaches the 1.4590 levels, and may trade around 1.4265 if it breaches the 1.4340 levels.

The dollar against the yen traded between the highest of 91.60 and the lowest of 91.22. Now the pair is trading around 91.54 levels between 91.45 and 91.95. The hourly, four hours and daily momentum indicators point that the pair is within an overbought area. The pair today may trade around 92.80 if it breaches the 92.30 levels, and may trade around 90.00 if it breaches the 90.60 levels.