Momentum indicators says majors attempt to correction

By IBTimes Staff Reporter | August 03 2010 3:14 AM

The Japanese currency's performance against major currencies rebounded in today's Asian session, after the Australian economy issued its report, showing an approval buildings unexpectedly dropped, while the Reserve Bank of Australia kept the interest rates at 4.50% for the third straight month, pushed the international investors to invest in safer assets.

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The euro fell today against the dollar and Yen during Asian session, while the euro/dollar pair is recording a low of 1.3159 and a high of 1.3179, having the pair trading around 1.3161. Also, the pair is trading in an overbought area according to momentum indicators on the four hour and daily charts. In case the pair breaks 1.3130 levels, means the pair is on the way to next level at 1.3060.

Also today, the British pound slipped against the yen and the dollar in Asian session, after it inclined to 1.5900 yesterday. The Pound/dollar pair recorded a high of 1.5931 and a low of 1.5859, having trading around 1.5919. On the other side the momentum indicators on the four-hours and daily charts indicates that the pair in an overbought area. The pair is on the track to down correction, after it is losing steam.

The dollar slipped against the Japanese yen to reach 86.13 and depreciating, recording a low of 86.06 and a high of 86.65. Also, the pair is trading in an oversold area according to momentum indicators on the four-hour and daily charts, trading among its resistance at 86.70 and a support at 85.90.