![]( "Pessimism in markets")
After the release of the news in the U.S. today, a wave of unwinding carry trades prevailed as the U.S. dollar and yen strengthened against majors. The news reflected that there still weakness in the U.S. labor market raising concerns recovery may be jeopardized.
The euro-dollar pair is showing a decline on the 4-hour charts according to Stochastic Oscillator momentum indicator. Data released today in the euro zone increased skeptics as unemployment reached the highest since 1999. The ECB kept the interest rate unchanged at 1% and will start buying bonds this month, but it showed concerns regarding future inflation and lack of capital in the financial sector. Meanwhile, the euro is trading at 1.4015 recording a high of 1.4153 and low of 1.3998 along with support at 1.3995 and resistance at 1.4044.
Relative to the pound-dollar pair, it is also showing a decline on the 4-hour charts. PMI construction came worse than expected, providing evidence the worst is not over yet. So far, the pound is trading at 1.6364 reaching a high of 1.6498 and a low of 1.6322 with support at 1.6322 and resistance at 1.6420.
With regard to the dollar-yen pair, it is showing an decline on the daily and 4-hour charts. The pessimism in markets caused the yen to advance against majors even the dollar. Now, the yen is traded at 95.91 hitting a high of 96.87 and a low of 95.85 along with support at 95.64 and resistance at 96.94.