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Currencies Update: The Euro and Dollar battle!!
Written by article default Wednesday, 24 November 2010 11:07
The European Common currency and the greenback are battling today due to mixed events.In the euro zone, Ireland announced its budget-deficit cut plan that will involve cutting welfare by 2.8 billion euros and increasing taxes by 1.9 billion euros to slash deficit by 3% by the end of 2014.
Still, negotiations are ongoing with EU and IMF officials to determine the amount of the bailout package that is expected to reach 85 billion euros, yet concerns the rescue contagion will spread across the region's debt-laden economies in addition to worries ahead of Irish elections that will start tomorrow are weighing on the euro movements causing it to fluctuate.
On the other hand, the dollar is sliding on the daily basis after a mixed data that included a drop in US manufacturing goods in October while improvement in jobless claims and New Home sales, yet the 4-hour and 1-hour charts are rising, as depicted by the dollar index.
The dollar index, which tracks the dollar movements versus a basket of major currencies, reached a high of 79.99 and a low of 79.41 while the day's opening was at 79.69.
Concerning the euro-dollar pair, it rebounded on the daily basis after getting support at 1.3365 which pushed the pair up to 1.3410, where it is currently traded.
The pair touched the highest point at 1.3420 and the lowest at 1.3282, where, the trading range for today is among the key support at 1.3215 and the key resistance at 1.3565.
Moving to the royal pair, it is showing a slight decline as the breach of 1.5875 yesterday pushed the pair to fall to a low of 1.5739, yet it rebounded to 1.5788 where it is currently trading.
Today, third-quarter GDP preliminary reading was released coming in line with both forecasts and the advanced reading at 0.8%, therefore it did not have much impact on the pound's movements.
The trading range for today is among the key support at 1.5645 and the key resistance at 1.5965.
With regard to the dollar-yen pair, it pared some of the losses incurred over the past three sessions after getting support at 82.85, whereas the pair is currently trading at 83.30.
The pair has reached a high of 83.49 a low of 82.92, while the trading range for today is among the key support at 81.50 and the key resistance at 85.00.