Worries are haunting the currencies market again as the royal pound breached $1.40 for the first time since 2001 due to the second UK bank-bailout in only three months illustrating once again that the global recession is endlessly becoming worse and is deepening at a faster rate. Consequently, these fears boosted the appeal of lower yielding assets as the yen and permitted therefore for the dollar to advance against the majors, not forgetting that a slight sentiment of optimism is added to the appeal of the green currency as hope is born with today's US new president inauguration.
As a result, the euro-dollar pair is declining having the dollar gaining against the Union currency as investors are getting rid of the euro due to the loss of appetite of risk, in other words an unwinding of carry trades is occurring so far. The euro is therefore traded at 1.2932 recording a high of 1.30099 and a low of 1.2920 along with a resistance at 1.2981 and a support at 1.2940 knowing that the pair has a strong tendency to slip further to the downside as seen through the momentum indicators at different time scales.
The pound-dollar pair is falling deeply to the downside due the worsened crisis in the United Kingdom that pushed the government to have this recent bank bailout which deteriorated the appeal of the royal currency completely having the pound so far traded at 1.3973 recording a high of 1.4426 and a low of 1.3937 with a resistance level detected at 1.4019 and a support level at 1.3902. Furthermore, a slight incline of the pair is forecasted to occur as the pair is trading in an over-sold area on different time scales as shown through the momentum indicators.
Now, the dollar-yen pair is collapsing as well as the yen is the main targeted currency of all investors since it is the lowest-yielding asset in which the investors' finds refuge as pessimism is haunting the market. The yen is so far traded at 90.27 recording a high of 90.97 and a low of 90.03 with a resistance level witnessed at 90.41 and a support level at 90.13, which are levels in which the pair is trading as mixed signs could be seen through the momentum indicators on different time scales.