Currencies did corrections today after yesterday's panic when we saw that fears that caused a plunge in stock markets and higher-yielding currencies fell sharply against refuges. Last night Dow Jones lost 1000 points, the strongest fall since 1987 on fears the debt contagion will spill over across European nations. However, today the yen and dollar are doing downside correction ahead of the G7 meeting today where leaders will discuss the Greek fiscal woes. The dollar index, which traces the dollar movements versus six major currencies, snapped four days of incline as it fell from a high of 85.25 recorded yesterday to 84.50 while it is expected to get support at 84.25 then 83.63.
With regard to the euro-dollar pair, it rebounded on the daily and 4-hour charts from the lowest level in more than a year against the dollar, reversing its previous losses as the pair rebounded from an oversold area as depicted by the Stochastic Oscillator momentum indicator on the daily charts. Debt worries in Greece and euro zone members are raising concerns and weighing on the European single currency pushing the euro to the downside. The 1999-introduced currency inclined today to 1.2790 after getting support at 1.2500 levels. The pair opened at 1.2618, while it reached a high of 1.2798 and a low of 1.2583. For the rest of the day, the pair is predicted to move between support and resistance at 1.2615 and 1.2785 respectively.
As for the sterling-dollar pair, it is continuing its downside direction on the daily charts, where the pound is traded at the lowest level in more than nine months versus the green currency ahead of declaring the winner in the elections today. However, the royal pound pared some of its losses as it rebounded from the day's low at 1.4473 to 1.4670. Earlier today, the pair recorded a high of 1.4932 while it is expected to move between support at 1.4615 and resistance at 1.4775.
Relative to the dollar-yen pair, it is showing a vagarious upside rebound on the daily charts as the dollar retraces some of the sharp losses incurred yesterday when the pair fell nearly 600 pips. The pair is currently trading at 92.45 after hitting a high of 92.77 and a low of 89.99, whereas support is seen at 91.45 while resistance is at 93.00.