The dollar gained against the majors so far as it is highly forecasted that the U.S President-elect Barack Obama will be able to conquer the second half of the $700 billion financial bailout to try to boost the economic growth of the U.S by funding businesses and homeowners. Moreover, the euro weakened as a further interest rate cut is forecasted by the European Central Bank and the pound depreciated since some pessimistic economic data has just been released.
As a result, the euro-dollar pair is declining as the Union's currency lost some of its appeal since it is highly predicted that an interest rate cut will occur by the ECB, to try to avoid a further fall in the recent deepened recession, with a euro so far traded at 1.3294 recording a high of 1.3358 and a low of 1.3221 along with a resistance at 1.3340 and a support at 1.3260S. Now, a slight incline of the pair is witnessed on the four hour scale as the pair is trading in an over-sold area as seen through the momentum indicators.
The pound-dollar pair is falling deeply having the pound deteriorated so far as the overall royal trade balance released today showed an extended deficit illustrating consequently that the U.K growth is slowing down at a faster pace. The pound is now traded at 1.4610 recording a high of 1.4817 and a low of 1.4586 with a resistance level detected at 1.4661 and a support level at 1.4531. Plus, the pair shows a high tendency to slip further to the downside.
Now, the dollar-yen pair is steady so far, due to the lack of fundamentals, with a yen traded at 89.10 recording a high of 89.53 and a low of 88.77 along with a resistance at 89.40s and support at 88.90. Furthermore, the momentum indicators are showing that the pair is trading in an over-sold area through different time scales which forecasts a slight incline of the pair.