Slowly and carefully for a quick profits!

US Dollar started this trading week with a strengthening against the main currencies and now trading around 1.3160 against the Euro, at 1.5550 against the sterling and around 83.80 against the Japanese Yen. Look like market liquidity remains low and more and more traders is closing their positions before end of the year holidays, so sharp moves is a common action this time of the year. On the fundamental side seems like a increasing of a capital depth risk in Euro zone and new hopes for a US interest hike doing good for a Dollar and smart investors using price edges for a short profit taking. Later this week will focus traders on a Bank of England Minutes on Wednesday, US Gross Domestic Product for the 3rd quarter of 2010, US housing data and US Durable Goods Orders data on Thursday.

Technical Levels

EUR/USD

Pair is trading around last week strong support 1.3160 and MACD starting to turn up from negative levels. RSI pointing up from oversold levels and its look like we still in a range trade. For us just a brake below 1.3100 might indicate a new lows and going out from the range.



USD/JPY

The pair in his neutral levels while a resistance of 84.50 is still a major point for a pair to remain trading in December range. MACD is flat and RSI is no showing any signs for a clear direction. We will wait for the picture to become clearer or to sell on a 84.50 failure.



GBP/USD

We start to see a small correction for the daily lows on a hourly’s charts, while MACD on positive momentum after bullish cross. RSI also pointing up from oversold levels. Might be a good idea to use these low levels for new and fast longs. On wider picture, just a brake of 1.5380 will be a clear sign for new lows.