Dollar weakening…

By IBTimes Staff Reporter | January 21 2010 2:03 PM

So far the green Benjamin lost strong momentum throughout the currencies market against the major currencies and the low-yielding yen after that investor's appetite of risk was strongly corroded as the U.S President recommended trading restraint on financial institutions, limiting in other words risk-taking at banks, encouraging traders to find refuge in the Japanese currency.

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As a result, the euro-dollar pair is currently inclining as the euro is advancing against the present weakened dollar, having the Union currency trading so far around 1.4112 recording a high of 1.4143 and a low of 1.4026 with a resistance at 1.4145 and a support at 1.3975, knowing that the pair shows a strong tendency to continue on climbing to the upside according to one-hour and four-hour stochastic oscillator.

As for the pound-dollar pair, it is continuing on inclining with the royal pound trading around 1.6217 recording a high of 1.6310 and a low of 1.6123 with a resistance at 1.6295 and a support at 1.6100, while that the four-hour and one-hour momentum indicators indicate us that the pair is highly forecasted to rise further to the upside.

Now, turning to the dollar-yen pair, it is deeply plummeting and we should know that the dollar fell to a one-month low versus the low-yielding that is so far trading around 90.26 recording a high of 91.87 and a low of 90.10 along with a resistance level seen at 91.85 and a strong support level witnessed around 89.75.