Today, movements are within narrow range in the absence of economic fundamentals from major economies and due to Labor Day holiday in the United States and Canada.

The dollar is showing slight incline against a basket of major currencies as depicted by the dollar index which rebounded from support at 81.90 to record a high of 82.13 after falling over the past two weeks.

Concerning the euro-dollar pair, it is showing slight decline on the daily and 4-hour charts as a correction after four consecutive sessions of rise. Meanwhile, there is optimism in the euro zone as a result of a series of upbeat data from the euro area and after the ECB has raised growth forecasts for 2010 and 2011 last week.

So far the pair is trading at 1.2877, touching a high of 1.2916 and a low of 1.2865, while for the rest of the day the pair is expected to move between support and resistance at 1.2830 and 1.2900 respectively.

Turning to the sterling-dollar pair, it is moving west on the daily charts but may find support at 1.5320 levels. Later in the week, the BoE will announce interest rate and APF quantity for the month of September where both are expected to remain as is. However, the economy has been witnessing some slowdown, according to the data released starting form July, which is causing some bearishness in the pound movements.

The royal pair is currently trading at 1.5394 after visiting a high of 1.5488 and a low of 1.5343, whereas it is expected to move between support at 1.5320 and resistance at 1.5440 for the rest of the day.

With regard to the dollar-yen pair, it is little changed on the daily basis where the dollar is doing shy attempts to rebound from the downside trend that began since May. Still, the US economy is showing weakness, despite the better-than-expected data released last week, while, on the other hand, there is absence of any intervention from the BoJ to weaken its currency.

Now, the pair is trading at 84.17 after recording a high of 84.49 and a low of 84.02, while support is seen at 83.85 while resistance is at 85.15.