Forex Outlook: US Dollar Mixed Against Major Currencies

The US-dollar slipped versus the euro while continuing to hold narrow trading ranges in Asia on Wednesday. Investors showed slight preference for risk assets as some of the region’s stock markets traded in positive territory.

The dollar fell to a 5-day low of 0.9458 against the Swiss franc and a 2-day low of 1.2730 against the euro. Support levels for the greenback are seen at 0.9440 against the franc and 1.2750 versus the euro.
According to Fxstreet the USD/JPY pair is shooting higher ahead of London session after reports coming out of Tokyo suggest that Japanese Prime Minister Yoshihiko Noda plans to hold lower-house elections on December 16. The pair has broken the static resistance at 79.60 and peaked at 79.80. Former-resistance-turned-support at 79.60 should act as an area of value to “buy on dips” as we move into the European session.

The Dow Jones-FXCM U.S. Dollar Index, which reflects changes in the value of the U.S. dollar measured against a basket of the most liquid currencies in the world, looks poised to maintain the range-bound price action as forex traders weigh the outlook for monetary policy. The expected fresh batch of central bank rhetoric may serve as a catalyst to spark new monthly highs in the index and the upward trend from the previous month is expected to resume as the world’s largest economy gets onto a more sustainable path. The index is currently at 9981.37, 0.11 percent higher than yesterday. Dailyfx expects another assault on the 10,000 figure.