As pessimism continues to flood the markets, we are seeing investors buy lower yielding currencies, since they are trying to avoid risk at a time of the ongoing global downturn. This means that investors turn to the dollar and the yen as a safe refuge against the worsened world economic outlook, while they sell major currencies.

The euro zone released its GDP annualized reading, showing that the finalized contraction widened to 4.9 percent from the preliminary reading of 4.8 percent, this news did not effect the euro much since already the pair is continuing its downside trend. The EUR/USD is being traded at 1.3919 while recording a high of 1.3927 and a low of 1.3860. The momentum indicators on the one-hour chart are showing us that the trend is to the upside while there is a support at 1.3896 and a resistance of 1.3973.

Now looking at the pound we see that it starting to gain ground versus the federal currency yet there is a strong downwards trend as the moving average indicator is showing us supported by the 5 and 20 days on the one-hour chart. The GBP/USD is being traded at 1.6119 while recording a high of 1.6139 and a low of 1.6048. For the pair we are seeing a support at 1.6045 and a resistance at 1.6197.

In the markets we are seeing an unwinding of carry trades as investors are buying the Japanese currency versus major currencies, which is giving the yen strength to climb against the dollar. The USD/JPY is being traded at 94.20 between the support of 94.14 and the resistance of 95.04 while recording a high of 94.74 and a low of 94.09.