Majors Extend Gains against Greenback

The worst than expected retail sales didn't do the U.S. dollar any good, especially since it's been under selling pressures ever since the U.S. session opened on speculation that some financial institutions are assessing the prospects of taking over Lehman Brothers the U.S. fourth biggest securities firm over weekend in a cut deal price.

U.S. stock equities are erasing yesterday's gains and send greenback lower against major currencies, the Euro managed to breach the resistance level at 1.4047 against the U.S. dollar and rose back to the $1.41 level but couldn’t breach the 1.4154 resistance level so far, the pair recorded a low of 1.3972 today which provided the pair with huge upside momentum to acquire a high of 1.4143 so far.

Te Pound also rose against the U.S. dollar and extended its gains after the pair managed to breach the 1.7676 resistance level which stood strong over the last few days in the pair's upside attempts, and now the pair is trading just below the resistance level at 1.7790, the GBP/USD pair recorded a low of 1.7541 and rose from that supported by strong upside momentum to set today's high so far at 1.7793.

Investors continued to sell the U.S. dollar today against the Japanese Yen as the dollar weakness prompted investors into finding alternative investments represented by higher yielding assets like the Euro and the Pound, the USD/JPY pair dropped for a second day as the pair breached the 50% correctional level at 107.16 and the momentum indicators are showing the pair is being trade within an overbought area on daily basis and that could support downside wave until the 61.8% level at 106.35, but only breaching the 107.16 would confirm any further upside waves towards the 107.60-107.70 levels, the pair recorded today a low of 106.71 and a high of 107.69.

Crown Forex

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