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Currencies Update: Pairs narrow trading on technical movements and weakened dollar…
Written by article default Wednesday, 29 September 2010 10:59
So far the major pairs are consolidating throughout the currencies market trading due to technical movements and a weakened dollar, knowing that the dollar index, which measures the green Benjamin strength against a basket of currencies, plummeted today to an eight-month low as it is now speculated that the Federal Reserve will increase purchases of government debt to stimulate the economy and support its current stagnated revival from the crisis.Accordingly the euro-dollar pair is consolidating on the four-hour scale and inclining faintly on the one-hour chart as a result of these technical movements and weak U.S currency but is forecasted to start plunging according to the four-hour momentum indicators having so far the Union currency trading around $1.3637 recording a high of $1.3644 and a low of $1.3564 with a resistance level seen at 1.3775 and a support detected at 1.3420.
As for the pound-dollar pair, it is slightly plummeting and actually highly projected to slide further to the downside according to the one-hour and four-hour stochastic oscillator, having the royal pound now trading around $1.5788 recording a high of $1.5873 and a low of $1.5760 with a resistance level that could be seen around 1.5935 and a support at 1.5560.
Now, turning to the dollar-yen pair, it is consolidating as well due to the present technical movements taking place throughout the currencies market and the dollar that lost considerable strength today, having accordingly the low-yielding Japanese currency trading so far around 83.62 recording a high of 84.08 and a low of 83.48 with a resistance detected around 86.25 and a support witnessed at 83.00.