Activity on Forex is very slow these days as the result prices in USD pairs are mostly the same to those of the last 24 hours.
We do not have much of macroeconomic data. But above all, investors are expressing caution and for this reason major currency pairs demonstrating a lower activity like during the holidays.
The main reasons for this phenomenon are in two different points: first, the lack of clarity from Europe regarding the debt crisis affecting several countries in southern Europe. The issues are not solved as there is no specific aid; it is just a time-saving method. But it is not recommended in this situation. Moreover the markets are expecting the Fed meeting in Jackson Hole, scheduled for Friday. It is considered that there will be important announcements made by Chairman Bernanke with the FOMC meeting in sight. But there are yet some concerns which make stock markets move very careful.
In this context, the euro is moving in a narrow price range, not exceeding 1.2580, but neither falls from 1.2530. The short term charts remains the single currency with an uptrend, and the break of the mentioned above resistance stretch rally crossing at least to 1.2605, the first firm target. At the same, the area of 1.2630 can be taken into account.
The pound also moves within a very narrow band, presenting a clearer upward trend in the short term and could reach 1.5880 in the next few hours.
Meanwhile, the yen remains unchanged, and the Canadian dollar remains in the weak uptrend, you could lose the break of 0.9905.
As for the reports of the day, we are waiting for pending home sales at 10:00. At 10:30 there will be the turn of oil inventories, and at 2:00, the Fed's Beige Book, which will be closely followed by the markets.

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