Dollar dropped to three weeks low against majors

The U.S Dollar lost momentum today amid expectations that the Federal Reserve might plan to extend stimulus measures in order to boost economic growth after fears dominated markets as the infamous jobless report showed continuous deteriorating in the U.S labor sector.

Friday's news from the labor sector showed that almost 85 thousand jobs were lost in the month of December, thus forcing the dollar to decline against major currencies by more than 0.7%. The U.S Dollar Index; which measures the performance of the Green Benjamin against a six major currencies including the Euro, Pound and Yen declined from the opening levels of 77.072 to trade at 77.001 after reaching the highest levels for today at 77.159 and the lowest at 76.790.

The euro-dollar pair currently heading upwards on the Daily scale where on the four hour chart might decline to the pair's trading in an overbought area on the Stochastic Oscillator which will pressure the pair to decline over the upcoming period to adjust the price, taking the pair again to the breached resistance level that turned into support at $1.4479. The pair is currently targeting the resistance levels at $1.4564 as it currently trading at $1.4519, where the pair managed to record the highest levels for today at $1.4556 and the lowest at $1.4406. As for the upcoming support and resistance levels, they can be witnessed at $1.4430 and $1.4565 respectively.

The sterling-dollar pair continues to incline after it managed to breach the resistance levels at $1.6042 where it currently targeting the descending channel's resistance level at $1.6136 in order to reach the upcoming resistance levels that can be witnessed at $1.6158, as for trading on the four hour chart the pair is currently heading downward as it reached an overbought area which will force the pair to rebound from the resistance levels mentioned above, thus the pair is showing tendency to drop over the upcoming period to the support level witnessed at $1.6042. The pair managed to reach the highest point at $1.6192 and the lowest at $1.6044 while currently trading at $1.6084, as for the upcoming support and resistance levels they can be witnessed at $1.6020 and $1.6095 respectively.

Finally talking about the USDJPY pair, the pair managed to breach the ascending channel's support levels at $92.17 as it currently trade at $92.02 where the pair is expected to drop in order to test the upcoming support levels at $91.29. The pair managed to reach the highest levels for today at $92.65 and the lowest at $92.00, meanwhile due to the upcoming Asian Session the pair is expected to incline and return within the ascending channel reaching the resistance levels at $92.67 before dropping again throughout the upcoming European and U.S session. The upcoming support and resistance levels for the pair are set at $91.25 and $92.60 respectively.