Today, the markets are clam yet we are seeing the dollar strengthening versus major currencies as once again there is pessimism in markets regarding anticipations that financial institutions will post more losses while companies continue to report lower profits which means a global recovery will take longer than presumed.
Based on the speculations in the market and since the euro is considered a higher yielding asset, investors during pessimism in the markets tend to fear investing in higher-yielding assets as they avoid risk. Despite the lack of fundamentals from the euro zone, we see that the euro is depreciating versus the dollar. The EUR/USD is being traded at 1.3917 while recording a high of 1.3998 and a low of 1.3912. For the pair we see that there is support at 1.3895 and a resistance at 1.3973.
Turning to the cable/dollar pair, we see that the pair is also sliding downwards which means that the dollar is gaining against the pound as they trade at 1.6125 while recording a high of 1.6328 and a low of 1.6101. The momentum indicators on the four-hour charts are showing that the pair is being traded in an oversold area and if the pair does not gain enough strength from the major support of 1.5911, it will continue to decline.
Now looking at the yen, we see that it rising versus the federal currency as the pair trades at 95.31 while recording a high of 95.91 and a low of 95.11. For the USD/JPY, we see that there is a support at 95.04 and a resistance at 95.82.