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Majors consolidating ahead of the euro zone's GDP

Fri, Feb 12 2010, 07:02 GMT
by ecPulse.com analysis team

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The euro and the pound are consolidating against the green currency ahead of the euro zone's GDP that is on queue today with forecasts saying economic growth slowed in the fourth quarter of last year. The USDIX slightly gained in today's Asian session to record a high of 80.14 and a low of 79.96, while it is currently trading around 80.05.

The currencies market still fluctuating despite the EU Economic Summit in Brussels carried good news for Greece issue, worth mentioning European Finance Ministers agreed to aid Greece to narrow its deficit that rose to 12.7% of the GDP, while the union's limit is 3.0%.

The euro dollar pair is consolidating between 1.3700 levels and 1.3650 levels recording a high of 1.3688 and a low of 1.3652. The pair dropped yesterday despite the EU summit result was optimistic, but still the euro leaders waiting for another meeting to identify the form of aids to Greece. The pair is currently trading around 1.3675 and it is having a support at 1.3650 along with a resistance at 1.3810, while the four hour stochastic oscillator is supporting the upside.

Regarding the pound dollar pair, it is consolidating between a high of 1.5704 and a low of 1.5662, having the royal pound trading around 1.5705. The pair is having a support at 1.5580 along with a resistance at 1.5745, and the pair may incline today according to the daily stochastic oscillator. In case the pair breached the resistance, it will target 1.5785 levels, and if the support was breached, the pair will fall back to the 1.5510 levels.

Finally, the dollar yen pair recorded a low of 89.57 and a high of 89.82, and the pair is currently trading around 89.75. Today's support could be found at 88.90, while the resistance could be found at 90.40. The green currency shall gains against the yen today according to the daily and four hour momentum indicators, and if the resistance was breached, the pair would climb to the 91.00 levels. Ye, the U.S Uni of Michigan Confidence is on queue and it tends to move the market on release.

Published on  Fri, Feb 12 2010, 07:02 GMT