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Fundamental Currencies Comments

Majors strengthened against the dollar

Mon, Nov 23 2009, 06:18 GMT
by ecPulse.com analysis team

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The euro and the pound started this week gaining against the green currency taking a correctional move to the upside after last week's decline when the dollar and the yen strengthened on fears spread within the currencies markets. The USDIX that tracks the strength of the dollar against a basket of currencies, declined to record a low of 75.24 and a high of 75.70 and it is currently trading around 75.30.

The euro dollar pair rallied in today's Asian session recording a high of 1.4946 and a low of 1.4867, having the 16 nation's currency trading around 1.4940. The pair is having a resistance at 1.5000 along with a support at 1.4880 and if it breached the resistance, the pair will target 1.5065. The euro zone's PMI manufacturing will be released today that may affect the pair's trades. However, the four hour stochastic oscillator is supporting the upside.

Regarding the pound dollar pair, it gained recording a high of 1.6545 and a low of 1.6497, having the royal pound trading around 1.6540. Today's resistance could be found at 1.6585, while the support could be found at 1.6490. The pair is expected to show further gains according to the one hour momentum indicators, so the pair may break the resistance and target the 1.6635 levels.

Finally, the dollar yen pair is consolidating between 89.10 and 88.75 recording a high of 89.02 and a low of 88.81. The pair is having a support at 88.50 along with a resistance at 89.00 and if the support was breached, the pair may fall back to the 88.10. Fundamentals concerning the housing market in the U.S are on queue today and they may affect the market on release. Yet, the four hour stochastic oscillator is supporting the downside.

Published on  Mon, Nov 23 2009, 06:19 GMT