Safe-haven Currencies Still Targeted…
Posted by hidayathfund on March 1, 2009
Major economies so far are plunging further into a worsened and deepened recessional phase as it is visibly seen through their economic performances in the last quarter of last year and through numerous governmental and official forecasts. In other words, worries and fears are beyond doubt haunting fully the psychological state of mind of the traders, pushing them to find refuge in the yen and the dollar, which in such dark historical periods are safe-haven currencies.
As a result, the euro-dollar pair is collapsing as investors are getting rid of the euro, the high-yielding asset, in front of the dollar due to the disappearance of risk of appetite, since a sentiment of pessimism is haunting the markets. Consequently, the euro is traded at 1.2836 recording a high of 1.2941 and a low of 1.2830 along with a resistance at 1.2926 and a support at 1.2787. Plus, a further fall is highly predicted as a decline of the pair is noticeable though the momentum indicators at different time scales.
Now, the pound-dollar pair is slightly rising to the upside as an upside recovery movement is occurring despite the unwinding of carry trades, having therefore the royal pound traded at 1.4311 recording a high of 1.4344 and a low of 1.4186 along with a resistance detected at 1.4350 and a support at 1.4253. Still, the pair shows a slight tendency to rise further to the upside as momentum indicators are showing a slender upside trading of the pair on the short and the long term.
As for the dollar yen pair, it remains on climbing but slightly as the yen is the safest-haven since it is the lowest-yielding asset. Accordingly, the yen is traded at 89.67 recording a high of 89.98 and a low of 89.15. Furthermore, a strong resistance level is witnessed at 90.45 and a support level at 89.22, which are levels in which the pair is trading as mixed signs are showed through the momentum indicators.