Euro vigorous vs. greenback

By @ibtimes on

The U.S. economy today is off, as a result of Columbus Day Holiday, while the dollar is losing strength in markets versus the euro, as a result of central banks increasing their reserves by purchasing the euros. The appeal of the dollar is reduced in markets, while also meaning that U.S. assets are negatively impacted in the nation, as they try to shake off the severe recession ravaging the economy.

The euro is climbing in markets against the federal currency; in turn it is hurting the euro zone's exports, since a more expensive currency means curtailed exports. Chairman of the ECB Jean-Claude Trichet, is favoring a weaker euro as a way to boost exports, which would help economic growth in the euro zone. The EUR/USD is being traded at 1.4732 between the support of 1.4698 and the resistance of 1.4764, while recording a high of 1.4741 and a low of 1.4676. Currently the volumes indicator on the one-hour chart is revealing low volume in markets.

Although the dollar is weakening in markets, it still remains vigorous versus the pound but based on technical movements, as the pair is currently trading in an oversold area using the momentum indicators on the one-hour chart. The GBP/USD is being traded at 1.5765, while recording a high of 1.5882 and a low of 1.5727. For the pair, we see there is a support at 1.5707 and a resistance at 1.5813. The moving average indicators are providing us with a downside direction on the one-hour chart as well.

In Japan, we see that markets are closed, as a result of Health Day Holiday. However, we are witnessing the yen tumble against the dollar in markets, as the USD/JPY pair is being traded at 90.34 between the support of 90.10 and the resistance of 90.48, while recording a high of 90.45 and a low of 89.67. Looking at this pair on the one-hour chart, the momentum indicators are showing that the pair is trading in an overbought area.

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