The dollar continued to rally

By IBTimes Staff Reporter | December 30 2009 1:06 AM

Despite narrow trades we witness during Christmas holidays, the euro declined yesterday against the green currency and the yen, due to expectations saying a number of European governments may have face low credit ratings for its bonds and debts, just like the situation with Greece. This gave the dollar opportunity to attract investors to reach a one week high against the euro.

Sponsorship Link

The euro was in an attempt to rise against the dollar yesterday, but it found the resistance level of 1.4460 from where it dropped back to the 1.4300 levels to close above that level. If the pair fell below that level, it may decline to 1.4210 levels, before falling back to the 1.4120 levels. However, the pair recorded a high of 1.4349 and a low of 1.4305.

On the other hand, the pound failed to gain against its American counterpart, as it stopped at the resistance level of 1.6040 from where it dropped to trade around 1.5890 levels today, getting closer to the target levels of 1.5770, but momentum indicators may not support the continuous decline so the royal currency may find a support around that level. The pair recorded a high of 1.5906 and a low of 1.5880.

The dollar yen pair continued to gain yesterday as the dollar is attracting investors more than the Japanese yen in the last period. The pair reached 92.00 levels where it is trading around today, and the pair is targeting 93.00 on the short term, while momentum indicators on the daily charts says the pair is trading in an overbought area, that may stop the pair's rally. Yet, the 91.15 level remain a strong support for the pair and today it recorded a high of 92.25 and a low of 91.97.