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Euro drops with the European growth outlook

Published 08/16/2011, 03:27 AM
Updated 08/16/2011, 03:32 AM

The euro retreated against the dollar and other major currencies with the expected slowdown in the European region growth, on the other hand the U.S. dollar returned to gain after risk aversion controlled the FX market, which increased demand for safe haven currencies like the dollar and the yen.

The euro dropped against the U.S. dollar during today's Asian session. The EU currency is trading as of this writing at 1.4382 after recording the highest of 1.4444 and the lowest of 1.4366. On the short term the currency faces a support at 1.4310 while the momentum indicators show the pair is in an overbought area.

The pound retreated against the U.S. dollar during today's Asian session touching the lowest of 1.6321, after it recorded the highest of 1.6377, and as of this writing it is trading at 1.6334. On the short term the currency faces a support at 1.6230 which could support the downside movement for the pair, despite the momentum indicators show the pair is in an oversold area.

The dollar/yen pair dropped slightly today where it reached to its lowest at 76.72 level, the pair now is trading at 76.82 recording the highest of 76.90. Momentum indicators show the pair in an oversold area, yet the pair ignores those signs.

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