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Currencies Update: Stronger majors during the Asian session
Written by article default Wednesday, 29 September 2010 10:44
Majors continued their upside movement against the dollar during the Asian session, ignoring the negative signs given by the momentum indicators, where the euro and the pound rose versus the dollar and the yen.The Japanese Yen inclined against the greenback on speculations the effect of BoJ's intervention in the currency markets has ended, which increases the pressures on the central bank during its meeting next week.
The dollar dropped against the European currency during the Asian session, recording a high of 1.3594 and a low of 1.3565, and now the pair trades around 1.3590. The pair broke the level 1.3500, trying to reach the next level found at 1.3660. The momentum indicators still show the pair is within an overbought area; however the pair is ignoring these signals.
The pound/dollar pair inclined during today's session, trading below 1.5840. The pound recorded a high of 1.5833 and a low of 1.5797. The daily and four hours momentum indicators support the pair’s decline since it is trading in an overbought area especially with the strong resistance level found at 1.5870.
The dollar/yen pair declined recording a low of 83.70 and a high of 84.07, confirming the break of the support level 84.10 since it closed below it yesterday. The pair downside targets are found at 83.00 and then at 82.40, while the daily and four hours momentum indicators show the pair is in an oversold area.