The dollar lost its strength versus major currencies on anticipations that the worst of this global crisis has ended which increased risk appetite in markets causing investors to invest in the higher yielding currencies while selling lower yielding currencies which weighed on the dollar's strength causing it to tumble in the markets.
Looking at the euro, we see that as the dollar depreciated, the single currency inclined despite the Euro Zone lacking major economic data, which would have supported the rise in the euro especially if it was upbeat. The EUR/USD pair is currently trading at 1.4031 while recording a high of 1.4061 and a low of 1.3972. The momentum indicators on the four-hour charts are showing us an upside wave while there is a support at 1.3895 and a resistance at 1.4055.
The pound gained momentum especially after a Monetary Policy Committee (MPC) member of the Bank of England Andrew Sentance said that the United Kingdom recession might be bottoming out. This prompted investors to invest in the royal currency as they gained confidence that the outlook for the nation is brightening. The pound versus the dollar is currently trading at 1.6462 levels while recording a high of 1.6493 and a low of 1.6341. For the pair we are seeing a support at 1.6340 and a resistance at 1.6503.
The yen is rising against the federal currency but based on its weakness as the pair trades at 97.83 between the support of 97.50 and the resistance of 98.02 while the momentum indicators on the daily charts are providing us with a downwards channel. The pair recorded a high of 98.31 and a low of 97.64 so far.