The U.S. dollar and yen advanced on Monday as a continuation of pessimism that prevailed in markets since the release of the horrendous unemployment data in the U.S. and euro zone. Economic woes triggered demand on lower yielding currencies as safe-haven. Today there are no fundamentals in major economies; therefore, movements are mainly technical driven by investors' fears.
The euro-dollar pair is showing an incline on the daily and 4-hour charts according to Stochastic Oscillator momentum indicator. The pair is now oversold on the daily charts and therefore an upside correction is anticipated. Meanwhile, the euro is trading at 1.3913 recording a high of 1.3997 and low of 1.3875 along with support at 1.3895 and resistance at 1.3935.
Relative to the pound-dollar pair, it is also showing a decline on the 4-hour charts. The pair is also moving in an oversold area and is now near 1.6123 which represents 23.6% Fibonacci level. So far, the pound is trading at 1.6160 reaching a high of 1.6325 and a low of 1.6094 with support at 1.6080 and resistance at 1.6325.
With regard to the dollar-yen pair, it is showing a decline on the daily and 4-hour charts. The pair is reflecting the pessimism dominating markets ahead of important data released in major economies this week. Now, the yen is traded at 94.78 hitting a high of 96.13 and a low of 94.74 along with support at 94.74 and resistance at 95.74.