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Further weakness in the greenback during the Asian session

Published 04/14/2010, 03:03 AM
Updated 04/14/2010, 03:04 AM

The US dollar continued to weaken in today’s Asian session against major currencies, loosing some of the gains obtained earlier this week. The dollar index traded between the lowest of 80.18 and the highest of 80.46. Now it trades around the 80.23 level. The U.S. economy will release today the EIA weekly report for crude inventories and the business inventories expected to show some increase, in addition to the Fed’s Beige Book, the consumer prices index and the retail sales expected to shoe some improvement, which could affect the dollar’s movement during today.

The euro traded in narrow range with an upside bias during the Asian session between the lowest of 1.3606 and the highest of 1.3665. The pair now trades around the 1.3650 level, and between 1.3580 and 1.3670. Europe will today the seasonally adjusted industrial production. The daily, hourly and 4 hours momentum indicators show that the pair trades within and overbought area. The pair is expected to trade today around the 1.3700 level which if breached the pair might target the 1.3730, yet if the pair breaches the 1.3525 level the pair might target the 1.3500 level. 

The sterling also traded in a narrow range with an upside bias during the Asian session today, recording the lowest at 1.5376 and the highest at 1.5426. The pair trades now around the 1.5420, and between 1.5380 and 1.5455. The one hour and daily momentum indicators show the pair rebounded from an oversold area, while the 4 hours indicators show the pair rebounded from an overbought area. The pair is expected to trade today around the 1.5500 level which if breached the pair might target the 1.5525, yet if the pair breaches the 1.5295 level the pair might target the 1.5245 level. 

The Japanese yen traded during the Asian session between the lowest at 93.17 and the highest at 93.34. The pair now trades around the 93.25 level, and between the 93.20 and the 93.75 level. The one hour momentum indicators show the pair is within an overbought area. While the daily indicators show that the pair rebounded from an oversold area. The pair is expected to trade today around the 94.00 level which if breached the pair might target the 94.70, yet if the pair breaches the 92.55 level the pair might target the 92.15 level.

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