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Currencies Update: Lower demand on the dollar gave the chance for other majors to rise
Written by article default Tuesday, 28 September 2010 13:30
The European currency rose against the dollar following yesterday's correctional movement that pushed the euro from its five-month high levels against the dollar.Today, the greenback fell again versus its majors counterparts, on speculation that the Feds may adopt this week a new round of stimulus measures in order to sustain growth and boost recovery in the country.
The euro rose against the dollar during the Asian session, recording a high of 1.3469 and a low of 1.3425, and now the pair trades around 1.3461. The level 1.3500 prevented the pair from extending its upside movement. The momentum indicators show the pair is within an overbought area, however the pair is still trying to break this area to the upside.
The British pound had a calm trading versus the dollar during the Asian session, trading below 1.5840. The pound recorded a high of 1.5840 and a low of 1.5841. The pair now trades around 1.5805. The daily and four hours momentum indicators support the pair’s decline since it is trading in an overbought area along with the strength of the resistance 1.5870.
The dollar/yen pair declined, recording a low of 84.16 and a high of 84.33, while the support 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.