Dollar and major currencies in correction

By IBTimes Staff Reporter | May 07 2010 9:36 AM

The U.S. economy released its jobs report showing that 290 thousand jobs were added to the market yet unemployment rallied to reach 9.9% in April from the prior 9.7%. The dollar today is seen declining based on technical movements as majors are being traded in oversold areas, while they are trying to gain momentum. The Dollar Index, which measures strength of the dollar versus six major currencies, is currently declining trading at 84.81 while recording a high of 85.13 and a low of 84.31.

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As investors are looking forward to the details of the bailout plan provided to Greece by the EU and IMF, we see that the euro is rallying while also it is supported from the Chancellor Angela Merkel approving the bailout worth 22.4 billion euros, as part of the 110 billion euros. The lower house voted on the bill while the upper house is still left to vote. Currently the euro dollar pair is trading at 1.2681 between the support of 1.2615 and resistance of 1.2785 while recording a high of 1.2798 and a low of 1.2583. Looking at the daily charts, the technical indicators are showing us, that the pair is being traded in an oversold area.

The pound versus dollar fell to the weakest level in nearly a year and a half ahead of the final results of the UK elections; investors have their eyes on the outcome of final results, as this will determine the outlook of the nation. Also the pound tumbled further as David Cameron's Conservatives lost 30 seats therefore adding to the expectations that these elections might not have a clear winner while these elections are considered hung parliament since 1974. The GBP/USD is currently trading at 1.4691 above the support of 1.4615 and below the resistance of 1.4775 while so far posting a low of 1.4473 and a high of 1.4932. Here also the technical charts are showing us that the pair is being traded in an oversold area.

The USD/JPY is currently trading at 91.88 between the support of 91.45 and the resistance of 93.00 while recording a high of 93.19 and a low of 89.99, here we see that the dollar is doing an upside direction after declining for two days especially with yesterday's decline.