The U.S. dollar little changed ahead of the FOMC meeting

  @ibtimes on December 16 2009 9:38 AM

The green currency little changed few hours before the FOMC announces the interest rate for December. The FED is expected to hold the rate unchanged near zero despite the upbeat data released recently from the U.S., suggesting the economy is on the right track. Housing report released today showed improvement, while annual CPI rocketed to 1.8% from -0.2%. The dollar index is currently at 76.82 compared with the day's opening at 76.91.

With regard to the euro-dollar pair, it is showing a slight incline on the daily charts, but showing downside tendency on the 4-hour and 1-hour charts. The pair is still floating in an oversold area, according to the Stochastic Oscillator on the daily charts. Today PMI manufacturing and services along with the CPI showed progress which helped the euro to rise earlier today to a high of 1.4584. The pair is currently traded at 1.4538 recording a low of 1.4508, whereas the coming support is at 1.4508 then 1.4500 and resistance at 1.4570.

As for the sterling-dollar pair, it is inclining on the daily charts after breaching the resistance at 1.6290, which represents 50% Fibonacci retarcement to the upside trend that started on October 13, where it is currently traded at 1.6357 after setting a high of 1.6374 and a low of 1.6229; while the coming support for the pair is seen at 1.6290 and the resistance is spotted at 1.6400.

Relative to the dollar-yen pair, it inched up today on the daily charts after rising sharply yesterday. The pair breached the resistance at 89.42 which became a support, where it now traded around 89.67 after hitting a high of 89.87 and a low of 89.36, whereas the coming resistance is spotted at 90.15.

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