Majors slightly slide on technical corrections

By IBTimes Staff Reporter | January 13 2010 10:32 AM

The dollar is losing strength in the markets as there is optimism in the markets as a result of projections that global economic growth is steady, as investors are optimistic, they tend to trade in higher yielding currencies versus lower yielding currencies which therefore weighs on the dollar's momentum. The Dollar Index, which usually measures strength of the dollar versus six major currencies, is currently traded at 76.93 while recording a high of 77.14 and a low of 76.59.

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As the euro was climbing versus the dollar earlier from the risk averse investors, currently we see that the euro is starting to depreciate against the federal currency as a result of technical movements. The EUR/USD is currently traded at 1.4507 between the support of 1.4450 and the resistance of 1.4565 while recording a high of 1.4578 and a low of 1.4455. The momentum indictors are providing us with a downwards trend on the one-hour chart after the pair could not break the resistance of 1.4585.

The pound extends its incline in the markets from earlier in the session as Bank of England policy maker Andrew Sentance states that interest rates might be raised this year, therefore investors seek the pound as they are optimistic about the outlook of the currency. For the GBP/USD pair we see that they are being traded in an overbought area as the momentum indicators on the one-hour charts are showing us, currently the pair is traded at 1.6260 between the support of 1.6240 and the resistance of 1.6325 while recording a high of 1.6293 and a low of 1.6135.

For the dollar yen pair we see that they are traded at 91.20 while recording a high of 91.52 and a low of 90.89, here the momentum indicators also on the one-hour charts are showing us a downwards direction while there is a support at 90.35 and a resistance at 91.85.