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Narrow-trading after a strong high-yielding assets targeting…

Published 07/13/2010, 01:36 PM
Updated 07/13/2010, 01:48 PM

So far major pairs are narrow trading as a result of technical movements after that hopes mounted today as optimism is strongly globally spread as it is powerfully speculated that the world's leading economy corporate earnings will beat the estimates of analysts, which encouraged traders to target higher-yielding assets; the euro and the pound, within the prior EU session.

In fact currently, the dollar index, which tracks the strength of the dollar in front of a basket of currencies, declined on a four-hour and 1-hour charts to trade around 83.62 recording a high of 84.54 and a low of 83.37.

Accordingly, the euro-dollar pair is recently narrow trading due to present technical movements shaping currencies trading, having the euro trading so far around $1.2699 recording a high of $1.2738 and a low of $1.2521 with a resistance at $1.2750 and a support at $1.2545, knowing that the pair may start to slump according to the one-hour and 4-hour stochastic oscillator.

As for the pound-dollar pair, it is consolidating as well as the euro-dollar pair and shows a tendency to slip to the downside according to the four-hour momentum indicators to have the royal pound so far trading around $1.5155 recording a high of $1.5189 and a low of $1.4962 with a resistance seen at $1.5210 and a support watched at $1.4945.

Now, turning the dollar-yen pair, it is faintly inclining and is forecasted to climb further to the upside according to the one-hour and four-hour momentum indicators, having the pair trading recently around 88.36 recording a high of 88.86 and a low of 88.00 with a resistance level witnessed at 89.55 and a support detected at 87.00.

 

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