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Euro gains on Greece’s bailout plan
Tue, Mar 16 2010, 18:57 GMT
The 16-nation currency gained severely against the Dollar as E.U finance ministers drafted a blueprint to aid Greece with its ballooning deficit, in addition news from the Standard & Poor’s of affirming Greece’s credit rating at BBB+ despite its debt issues while downgrading the country from “creditwatch Negative”, where it stated that the country’s budget cuts that was passed by Greece’s government “was the appropriate thing to do”, thus investors turned into Greek Bonds along with the high yielding assets and sent the Dollar to suffer in today’s trading session along with pushing commodities and stocks higher where the S&P 500 index is currently trading at 17 month high.
The U.S dollar index, which tracks the performance of the Dollar against a basket of currencies, sank in today’s trading session where it’s currently trading at 79.878, compared with the opening levels of 80.110 where it managed to reach the highest levels for today at 80.326 and the lowest at 79.746.
The euro-dollar pair managed to gain against the Dollar as its showing on the daily and four hour scale where the pair is currently in attempt to test the 50% Fibonacci levels at $1.3735 that was breached yesterday, which was considered a strong support levels in today’s trading session and converted to resistance in today’s trading session. the pair is currently trading at $1.3725 where expectations show that the pair will continue to ascend further if trading remains above $1.3610, due to the positive signs provided by the Stochastic Oscillator. The pair reached the highest for today at $1.3771 and the lowest at $1.3655 meanwhile the upcoming support and resistance levels they are set at $1.3715 and $1.3770 respectively.
Moving to the Sterling, the pair slashed all yesterday’s losses where its currently trading at $1.5187 where its testing a strong resistance levels at $1.5210, expectations show that if the pair managed to breach those levels that it will continue to rise further supported from the positive signs that is provided by the Stochastic Oscillator, therefore the upcoming targets for the pair is set on those resistance levels in order for the pair to continue to rise on the daily scale, the pair managed to reach the highest at $1.5206 and the lowest at $1.4975 meanwhile the upcoming support and resistance levels can be witnessed at $1.5130 and $1.5210 respectively.
Finally talking about the USDJPY pair, expectations show that the pair will decline but maintain its sideway trading as the RSI indicator is providing further signs of narrow trading in the upcoming period, given the fact that the Stochastic Oscillator is signaling a drop in the daily scale as the pair’s trading in an overbought areas. Meanwhile the pair is rising on the daily scale with targets at the resistance levels at $90.90. The pair is currently trading at $90.66 where it managed to reach the highest for today at $90.73 and the lowest at $89.97, as for the upcoming support and resistance levels can be witnessed at $90.10 and $91.25 respectively.