The Euro traded around the 1.4840 levels for the early part of today’s European session, after having soared to a new 17 month high of 1.4880 in today’s Asian session, following an uptrend that began yesterday after the US Federal Reserve came out with a dovish outlook with regards to the raising of its interest rates in the near future. The EURUSD pair is currently on a decline, trading at just above the 1.4800 levels, in line with the current 20 hour average. Resistance is seen at 1.4900 which if broken may see the single currency test resistance at the 1.5150 level – a resistance level denoted by the 161.8% Fibonacci extension level of the October 31st (2010) to January 2nd drop and is also around the 2009 high. Against the Sterling the Euro experienced a volatile session, ranging by some 50 pips, and climbing back up and above the 0.8900 levels, further to yesterday’s decline in which the EURGBP pair dropped by over 75 pips from a 6 month high of 0.8922 to a day’s low of 0.8845. The pair is currently trading around the 0.8872 levels.
The Sterling has been trading on a smooth decline in the European session, steadily dropping by some 70+ pips as the GBPUSD falls back on the previous session’s gains which saw it soar to 17 month high of 1.6745, towards the end of the Asian session. The GBPUSD is currently trading around the 1.4790 levels where it currently faces some support – a level which was yesterday’s high.
The Swiss Franc has also been dropping against the Dollar as the USDCHF pair rose to trade above today’s Asian session open of 0.8737. The pair had fallen within 25 pips of the all-time low of 0.8669 in the earlier session, but has since then taken a breather and has somewhat recovered. The recent gain of the Swiss Franc is attributed to the weakening of the USD which has sent waves across a basket of currencies, helping a number of currencies appreciate.
The Japanese Yen has been trading rather steadily in the European session, after having gained in the earlier session. The USDJPY pair traded around the 81.67 levels for most part of the session, dipping to a low of 81.47. The Asian session saw the JPY gain over 40 pips as the USDJPY dropped from a day’s open of 82.02.