Today, major currencies inclined in a slow pace after falling against the dollar in a correctional move, modifying momentum indicators that indicate now that currencies are trading in overbought area. The Japanese currency advanced against most of its major counterparts as the banking regulators told lenders to gauge the impact of the fall in property prices.
Yesterday, the euro fell against the dollar declining to 1.3150. Today the euro/dollar pair recorded a low of 1.3143 and a high of 1.3174, having the pair trading around 1.3148. Also, the pair is trading in an overbought area according to daily momentum indicators, while the four hours momentum indicators show the pair is trading in an oversold area. In case the pair breaks the 1.3130 level, then it will be on its way towards the 1.3055 level.
Turing to the British pound, which slumped yesterday against the dollar during the Asian session, and declined to the 1.5855 today. Today, sterling recorded the highest of 1.5909 and a lowest of 1.5871, trading around 1.5885. On the other hand, the four hour and daily momentum indicators indicate that the pair is in an overbought area signaling a possible correctional movement.
The dollar/yen pair fell to reach the 86.08 level, after recording a high of 86.44. The pair is trading in an oversold area according to the four-hour and daily momentum indicators, the resistance level ahead resides at 87.00 and the support at 84.80.