Financial market witnessed a wave of negative vibes on Monday, especially in the currencies markets after investors shunned risky assets and set fourth low-yielding assets. Accordingly, saw the dollar rise against other majors due to the blurred sentiments that were spread across the market.
If truth be told, investors took a step back after German Spokesman said that Europe's mounting debt crisis will not be cured by the end of the week, as European leaders are set to meet and discuss a final bailout package that may prevent the debt crisis from getting worse.
The dollar index that measures the performance of the U.S dollar against other majors including the Euro, The British pound and the Japanese Yen rose after opening at the 76.74 to trade at 77.02, recording a high of 77.12 and a low of 76.44.
The yellow shiny metal sank on the daily charts to trade at $1669.95 an ounce after opening at $1680.65 an ounce, while Crude oil Prices dropped as the U.S dollar strengthened as well as investors sought less riskier investments to reach $82.22 a barrel since the opening price of $86.22 a barrel.
Also the Euro fell against the U.S dollar, the Euro/USD pair plummeted from the opening price of $1.3873 to reach $1.3763 while recording a high of 1.3914 and a low of 1.3739, therefore, the pair will be targeting a new support level of $1.3740 after breaching the key support of $1.3775 yet the pair will be trading below the resistance level of $1.3740.
The British pound dropped against the U.S as well, where the GBP/USD pair is trading below the opening level of $1.5816 to reach $1.5777 while recording a high of $1.5847 and a low of $1.5731, pointing the pair is trying to breach the support level of $1.5720 and if so, the new support level will be the $1.5690 and then the new support level of $1.5720 will become the new resistance level, otherwise, the resistance level remains at $1.5840.
Last but not least, the U.S dollar fell against the Japanese Yen after the pair opened at 77.22 on Monday, where the USD/JPY is trading near the ¥76.76 levels and the pair recorded a high of ¥77.45 and a low of ¥76.61, keeping in mind, the USD/JPY pair will be trading between the key support of ¥77.60 and key resistance of ¥77.90.