The dollar is still haunted by some pessimism as more bad data is being released in the United States demonstrating that the economy is slipping further in a worsened recession, having the U.S retail sales so far dropping. Still the green currency is advancing against the majors as a worsened economic outlook is seen in the Euro Zone and the U.K. Furthermore, traders are waiting for the ECB rate cut that will be released later on today.
As a result, the euro-dollar pair is slightly declining having a weakened euro, knowing that the ECB might decide to further cut interest rates to try to ease the impact of the global economical predicament. The Union currency is consequently traded at 1.3167 recording a high of 1.3233 and a low of 1.3134 and currently facing a resistance level detected at 1.3204 and a support at 1.3132. Plus, momentum indicators are showing that the pair is trading in an over-sold area and started to give signals that the pair is moving to the upside as a correctional movement.
The pound-dollar pair is declining as well, despite the worsened outlook of the U.S economy that has deteriorated its currency as the U.K growth slow down is at a faster pace due to the ongoing crisis. So far, the royal pound is traded at 1.4609 recording a high of 1.4661 and a low of 1.4555 along with a resistance at 1.4665 and a support at 1.4548. Moreover, an upside move for pair might be witnessed as the pair is providing mixed signals from momentum indicators on different time scales which does not rule out volatility for the pair.
Now, the dollar-yen pair is trading sideways with the pair traded at 89.05 and recording a high of 89.25 and a low of 88.47. A strong resistance level is showed at 89.37 and a support level could be seen at 88.76. Furthermore, the pair is showing a strong tendency to slip to the downside as investors are buying low-yielding currencies due to the rising fears in the financial markets, knowing that the yen is the safe heaven for the currencies.