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Currencies Update: Euro extends drop against dollar, at two-month low
Written by article default Friday, 26 November 2010 11:06
Investors focused on debt problems in the European continent due to the absence of major fundamentals from world’s leading economies, accordingly, pushing the euro to depreciate against the dollar where it reached two-month low.European debt woes led the currency to depreciate against the dollar, a scenario witnessed earlier this year when Greece acquired a bailout plan to trim its budget gap to EU limits.
Ireland, Spain and Portugal are projected to approve a bailout from EU on pressures, where the European economy, led by Germany, continues on preventing the crash of the Euro against majors.
The US dollar index opened today’s trading at 79.87, where it’s currently trading at 80.25 while touching a high of 80.38 and a low of 79.86.
The European shard currency fell against the dollar in trading, reaching 1.3243, compared with the opening levels of 1.3358 while reaching a high of 1.3361 and a low of 1.3215.
The pair continued its narrow trading since yesterday due to the Thanksgiving Holiday in US markets, alongside ongoing fluctuation near 1.3300.
We still await further bearishness, to build a base on the key ascending channel’s support level at 1.3245, which is supported by the negativity on Stochastic before resuming the expected bullish intraday direction starting targets around 1.3600. Note that stabilizing above 1.3245 will maintain chances of resuming the bullish direction.
The pound followed the same pattern as the Euro and fell for the fourth-consecutive trading day against the dollar, reaching 1.5700, compared with the opening levels of 1.5755 while setting a high of 1.5770 and a low of 1.5659.
The pair after trading in a narrow range yesterday is leaning towards the downside, while the downside channel’s support is descending towards 1.5710.
Trading after breaching pivotal support 1.5840 is forming a falling wedge that forces an expectation to witness some upside intraday movement, targeting an initial visit of 1.5840. This ascend requires moving past minor resistance around 1.5770, but in return the breach of 1.5710 will pave the way for more bearish intraday movement that will initially reach 1.5600.
Finally, the dollar ascended against the yen, reaching 83.75, compared with the opening levels of 83.58 while setting a high of 83.96 and a low of 83.54.
The pair is renegotiating the strength of critical resistance at 83.80, with negative signs appearing through momentum indicators that impede the breaching process.
SMA continues its bullish wave support, which thereby holds the upside intraday trend requiring the four-hour interval to remain above the mentioned resistance level.