Dollar gains vs. major currencies

on January 28 2010 11:09 AM

The dollar is climbing in the markets as investors are avoiding higher yielding assets as a result of fears once again back in the markets especially as the U.S. economy released its durable goods orders for December showing that it fell worse than expectations which disappointed investors. The Dollar Index, which usually measures strength of the dollar versus six major currencies, is currently traded at 78.93 while recording a high of 79.06 and a low of 78.53.

The euro is tumbling versus the dollar as investors as mentioned earlier are selling higher yielding assets which therefore weighs on the euros strength. Today from the euro zone we saw that confidence indicators were released showing that they are still weakened from the ongoing economic instability in the 16-nation region. The EUR/USD is currently traded at 1.3964 between the support of 1.3925 and the resistance of 1.4090 while recording a high of 1.4051 and a low of 1.3929.The momentum indicators on the one-hour charts are showing us that the pair is being traded in an oversold area.

Although the United Kingdom lacked major economic data, yet we see that the pound is declining in the markets against the federal currency. The volume indicator on the one-hour charts show us there is high volume in the markets while also the momentum indicators are providing us with a downwards trend as the pair trades in an oversold area. The GBP/USD is currently traded at 1.6136 between the support of 1.6170 and the resistance of 1.6300 while recording a high of 1.6275 and a low of 1.6127.

Now turning to the dollar yen pair we see that they are traded at 89.95 between the support of 89.30 and the resistance of 90.85 while recording a high of 90.54 and a low of 89.86, here also the momentum indicators show us that the pair is being traded in an oversold area on the one-hour charts.

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