Members login
Currencies Update: Majors retreat against the dollar in a correction movement
Written by article default Monday, 27 September 2010 11:43
With the beginning of this week, the European currency fell against the dollar on believes the European banks will need more funds, lowering demand for the euro. Meanwhile, majors are trading in overbought areas, which stopped their gains due to the need of a correctional movement to the downside.The euro rose against the dollar during the Asian session, recording a low of 1.3446 and a high of 1.3483, and now the pair trades around 1.3469. The level 1.3500 prevented the pair from extending its upside movement. The momentum indicators show the pair is within an overbought area, which supports the downside movement of the pair.
The pound had calm trading versus the dollar during the Asian session. The pound recorded a high of 1.5820 and a low of 1.5834. The pair now trades around 1.5804. The daily and four hours momentum indicators supported the pair’s decline since it is trading in an overbought area.
The dollar/yen pair moved to the downside, recording a low of 83.18 and a high of 84.36, while the level 84.10 prevented the pair from extending its decline along with the daily and four hours momentum indicators, which show the pair in an oversold area, supporting the rise of the pair to 84.70.