Dollar and Yen continue their fall

By IBTimes Staff Reporter | November 23 2009 11:31 AM

The dollar and yen continued their slide today after the U.S. existing home sales news which came better than expected. The low-yielding currencies fell on Monday on speculations the FED will continue with their stimulus and low interest rate. The dollar index, a measure of the dollar's movements versus six major currencies, slipped to 75.06 from the opening at 75.59, paring the previous two days gains.

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As regards to the euro-dollar pair, it is showing a sharp incline on the daily charts, retracing all the previous two-day losses. However, the pair on the 4-hour charts is showing a slight downside as it may reverse from an overbought area as indicated by the Stochastic Oscillator. The euro was enhanced also by the upbeat PMI data which surpassed analyst's forecasts. The pair is currently traded at 1.4980 recording a high of 1.4999 and a low of 1.4831, whereas the coming support is at 1.4940 and resistance at 1.5000.

As for the sterling-dollar pair, it is also inclining on the daily charts in a day that lacked fundamentals from the U.K. Nevertheless, the pair is showing a slight downside tendency on the daily and 4-hour charts. So far, the pound is trading at 1.6619 setting a high of 1.6647 and a low of 1.6470; while the coming support for the pair is seen at 1.6600 and the resistance is spotted at 1.6650.

With regard to the dollar-yen pair, it is continuing its sideways while showing a slight incline on the daily charts. Now, the pair is trading around 88.93 after hitting a high of 89.02 and a low of 88.55; while the pair is currently facing the coming support level at 88.55, while the resistance is spotted at 89.30.