The euro gained today against the dollar, while the pound declined slightly. Investor's appetite for risk is still strong as yesterday's Zew survey gave an optimistic outlook for the euro zone's economy that may help high yielding currencies to gain further today. The USDIX fell slightly recording a low of 78.82.
The euro dollar pair inclined recording a high of 1.4169 and a low of 1.4123, having the union currency trading around 1.4155. Yesterday's Zew survey gave an optimistic outlook for the Euro zone's economy as it came in at 54.9 in August from a prior 39.5 which is helping the euro to gain. The pair is having a resistance at 1.4180 along with a support at 1.4135. If the pair breached the resistance level it will target 1.4200. However, momentum indicators on the four hours scale are supporting the upside, and the euro zone's current account is on queue today and it may affect the pair.
As for the pound dollar pair, it fell slightly recording a low of 1.6511 and a high of 1.6594, having the royal currency trading around 1.6550. Yesterday the pair gained to move forward to the 1.6500 from the 1.6350 level supported by England's core CPI. The pair is having a resistance at 1.6585 along with a support at 1.6515. The BOE will release its minutes today affecting the pair's trades. According to the stochastic oscillator on the four hours chart's the pair is trading in an overbought area.
Finally, the dollar yen pair is consolidating between 94.95 and 94.45. The pair recorded a low of 94.50 and a high of 94.94. It is having a support at 94.35 along with a resistance at 95.00. So far, the stochastic oscillator on the daily charts is indicating that the pair is trading in an oversold area.
