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Currencies Update: Majors start a week with a decline
Written by article default Monday, 04 October 2010 05:00
Majors witnessed a calm trading against the dollar, while the greenback inclined slightly, thereby the euro is going to decline from it’s the highest level against the dollar in six months. The European crisis still continues to concern investors, which reduces the demand for the euro, and is consistent with momentum indicators that support to correctional movement.The euro declined against the greenback during the Asian session, recording a low of 1.3745 and a low of 1.3783, and now the pair trades around 1.3763, trying to reach the next level found at 1.3810. The daily and four hours momentum indicators show the pair is within an overbought area.
The pound/dollar pair declined slightly during today's session, trading below the 1.5820 level. The pound recorded a low of 1.5776 and a high of 1.5819. The daily and four hours momentum indicators support the pair’s decline, as a result of momentum indicators show the pair in an overbought area, supporting the pair's decline during today’s session.
The dollar/yen pair witnessed a fluctuation side, recording a low of 83.26 and a high of 83.86, and the pair is continuing to decline, following additional expectations that BoJ might intervene again in the currency markets. The pair's downside targets are found at 83.00 then at 82.40. The momentum indicators show the pair in an oversold area.