After the Group of Eight (G8) nations met this weekend, supporting the dollar right away boosted the federal currency in the markets as investors bought it especially asRussia's Finance Minster Alexei Kudrin said that the dollar will remain the world's major reserve currency.
As the dollar rose, the euro lost massive ground from the dollar's strength while on the other end, Britain's Telegraph newspaper quoted that Germany's top industrial group stated that the credit crisis in the economy is deepening. The EUR/USD pair is currently trading at 1.3863 while recording a high of 1.3987 and a low of 1.3835. For the pair we are seeing a support at 1.3751 and a resistance at 1.3895. The momentum indicators on the four-hour charts are showing us that the pair is trading in an oversold area.
The pound like the euro is depreciating versus the dollar as the pair trades at 1.6396 between the support of 1.6301 and the resistance of 1.6445 while recording a high of 1.6434 and a low of 1.6306. The momentum indicators on the daily charts are providing us with a downside channel. The ADX indicator on the four-hour chart is showing us that there is strong momentum in the markets.
The yen we are seeing is rising versus the dollar as the pair trades at 98.02 while recording a high of 98.57 and a low of 97.95. For the USD/JPY we are seeing a support at 97.95 and if the pair continues its downside movement, its target will be at 97.50.