United States Dollar:

The United States Dollar remains steady versus the single currency Euro in Asian trading today. The uncertainty over the Fiscal Cliff has led to a small rally in the US dollar Index over the last week. On the longer term the US dollar is slipping steadily against the basket of currencies, over the last two months.

The Index hit the highs of 81.50 in November, and has been falling ever since. The Index fell to 79.02 level in the second week of December, and thereafter is staging a small rally. Technically the US dollar is showing weakness on the Charts and is likely to slide further in the coming weeks and months.

The US dollar has slipped 0.1% to 79.72, in early Asian trading. Some of the analysts feel that ther might be a rally in the Asian equities in the next year as data there, is improving.

Stephen Halmarick, head of investment market research with Colonial First State Global Asset Management, said, “If we go over the \’fiscal cliff\’ and all these Americans wake up on Wednesday morning and go off to work and their pay packets are lower than they were last week because their taxes have all gone up, that\’s going to hit the economy pretty hard.”

Euro:

The Eur/Usd pair is holding steady at 1.3210 in early Asian trading. The pair has consolidated in the range of 1.3155 and 1.3285 and a strong breakout of the range is inevitable. The sideways trading is likely to be resolved with an up side breakout.

A break above 1.3300 may give a bullish signal for the Euro. On the down side a break below 1.3150 will negate this bullish view and could lead to a deeper pull back towards 1.2980 levels.

Australian Dollar:

The Aud/Usd pair has been sliding steadily after almost hitting the 1.0600 mark in mid-December. The pair is up 0.27% in Asian trading at 1.0401. The slide in Aud/Usd is expected to continue a bit longer.

Richard Breen, Rochford Capital consultant, said, “Until something happens there I don\’t think you will see many people taking large positions before hand. As soon as we hear something from the United States that will really determine near-term direction. It\’s a very quiet and illiquid market today.” The analyst also says that the volumes are being on the lower side due to a holiday session and a new year.

A break below 1.0370 could lead to a further swift fall below 1.0300 level. Strong support exists at 1.0280 level. Overall the pair is in a medium term down trend. A bullish case can be made out only after the pair rallies above the 1.0470 resistance level.

British Pound:

The pound is currently at 1.6152 and has consolidated in a volatile range of 1.6070 and 1.6200 over the past week. The 1.6070 area is a long term trend line support and 1.6200 is resistance.

A break above or below this range will determine the further outlook for the pair. A bounce above 1.6200 level could lead to a target of 1.6300, whereas a break below 1.6070 could lead to a sharp slide below 1.6000 level for the pair.

FREE Million dollar trader interview – http://www.tradingandinvesting4u.com/
Watch in live as I show you a AWESOME tip on how to read the stock market – http://www.youtube.com/watch?v=_gSjHkxlhXQ

FREE Million dollar trader interview – http://www.tradingandinvesting4u.com/
Watch in live as I show you a AWESOME tip on how to read the stock market – http://www.youtube.com/watch?v=_gSjHkxlhXQ

Author Bio: FREE Million dollar trader interview – http://www.tradingandinvesting4u.com/
Watch in live as I show you a AWESOME tip on how to read the stock market – http://www.youtube.com/watch?v=_gSjHkxlhXQ

Category: Finances
Keywords: Dow Jones, United States, ASX, Dollar index, Brent Oil, Gold