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Fears are strongly spread throughout the currencies market…

Published 08/12/2010, 02:31 PM
Updated 08/12/2010, 02:32 PM

Investor's appetite of risk is completely corroded by the current economical conjuncture of the world's leading economy as its the recovery has stagnated and lost momentum throughout several economic activities, having in mind of course that the jobless levels remained at a crucial level of 9.5%, while that today the U.S labor department showed today that more Americans unexpectedly filed applications for unemployment insurance last week, confirming a growth slowdown and that U.S companies are hesitant to hire.

Accordingly, as a result of these fears, the dollar index, which tracks the strength of the green Benjamin, is seeing its refuge appeal boosted at several time scale throughout the currencies market to trade so far around 82.57 recording a high of 82.78 and a low of 82.10.

As a result, the euro-dollar pair is slightly plunging but forecasted to start rising to the upside according to the four-hour stochastic oscillator, having the Union currency trading around 1.2833 recording a high of 1.2931 and a low of 1.2779 with a resistance level at 1.3000 and a support level seen at 1.2650.

However the pound-dollar pair is narrow trading due to technical movements now present within the currencies market, having the royal pound currently trading around 1.5581 recording a high of 1.5712 and a low of 1.5559 with a resistance at 1.5710 and a support at 1.5465, knowing that the pair shows a tendency to start climbing to the upside according to the one-hour and four-hour momentum indicators.

Now, turning to the dollar-yen pair, it is consolidating between a resistance witnessed around 86.55 and a support level detected at 83.50 as mixed signs are seen within the momentum indicators at different time scales, having the low-yielding trading so far around 85.84 recording a high of 85.98 and a low of 84.91.

 

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