The markets were closed yesterday as a result of the Christmas Day Holiday as currently trading is stable as major economies are closed due to the Holiday yet the Asian markets are running. The dollar slid in the markets as investors continue to fear the deepening of the recession in the U.S. economy while spending was pared during the holidays adding further to the misery they currently face.
Although the European markets are closed yet we see that the euro is rising based on the dollars weakness. The pair trades at 1.4051 while recording a high of 1.4072 and a low of 1.3988. Using the MACD indicator on a four-hour chart supported by 5 and 20 days we see that the direction is to the upside while on the one-hour chart the momentum indicators show us that the pair is trading in an overbought area and that there is strong momentum in the markets.
The pound like the euro is rising against the federal currency while the Bank of England is closed as a result of Boxing Day Holiday. The GBP/USD is currently traded at 1.4768 while recording a high of 1.4794 and a low of 1.4715. For the pair we see a support at 1.4714 and a resistance at 1.4795.
As the Asian markets are open we see that the Japanese economy released its industrial production for the month of November coming in at -8.1 percent from the prior month of -3.1%, which marked the quickest rate in 55 years. The released data caused the yen in the markets to become pressured as the USD/JPY currently trade at 90.45 between the support of 90.21 and the resistance of 90.81 while recording a high of 90.84 and a low of 90.31.
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