The U.S. dollar slightly changed ahead of important U.S. reports

By IBTimes Staff Reporter | January 29 2010 6:18 AM

The green currency slightly changed on Friday before the release of GDP for the fourth quarter advanced reading in the U.S., Chicago PMI and confidence report. The U.S. economy is predicted to show expansion to 4.6% from 2.2%. The dollar is continuing its gains this week, where it is advancing for the fourth consecutive day. The dollar index, a gauge of the dollar's movements versus a basket of six major currencies, inclined to 78.8 from the day's opening at 78.91.

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The euro-dollar pair is showing a slight decline on the daily and 4-hour charts, after dropping earlier today to a low of 1.3910. The pair is continuing its bearish pattern that started in December. Euro Zone's unemployment inclined to 10.0% in December from 9.9%, while CPI flash estimate inched up to 1.0% from 0.9%; according to the data released today. Meanwhile, the pair is traded at 1.3958 after reaching a high of 1.3987, where the coming support is seen at 1.3900 and next resistance is at 1.4000.

The sterling-dollar pair is consolidating on the daily charts, but showing a slight decline on the 4-hour and 1-hour charts. Presently, sterling is traded at 1.6136, recording a high of 1.6177 and a low of 1.6107; while moving between support at 1.6105 and resistance at 1.6170.

The dollar-yen pair edged up on the daily and 4-hour charts. The pair is currently traded at 90.24 near resistance at 90.34, which represents 38.2% Fibonacci retracement to the upside trend that started at the beginning of December. Today, the pair reached a high of 90.30 and a low of 89.56, where it is expected to face the coming support level at 89.10, while the resistance is spotted at 90.55.