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Currencies Update: The dollar fell against the euro as demand declines
Written by article default Wednesday, 22 September 2010 20:31
Today, the dollar fell to its lowest in six weeks against the European currency, after the Feds indicated during last night meeting that they are willing to take necessary actions when needed, showing that the reserve bank is ready to undertake more stimulus actions. As a result demand for the US assets fell.The euro rose against the dollar during the Asian session nearing the resistance level 1.3330, recording a high of 1.3312 and a low of 1.3280, and now the pair trades around 1.3294. The daily and four hours momentum indicators show the pair is trading in an overbought area, which might prevent the pair from breaking the resistance level mentioned above.
The pound inclined versus the dollar during the Asian session, trading below the 1.5700 level. The pound recorded a high of 1.5666 and a low of 1.5624. The pair now trades around 1.5656. Momentum indicators give selling signs; thereby the level 1.5580 might become the fist support level for the pair.
The 85.70 level managed to end the pair’s upside movement, pushing it to the downside. The dollar/yen witnessed heavy trading during its decline, recording a low of 84.76 and a high of 84.99 and now it trades around 84.83. The daily momentum indicators give selling signs, while the four hours indicators show the pair is in an oversold area.