The dollar weakened today against the euro and the royal pound after yesterday's fundamentals showed a rebounding industrial production in the U.S along with narrowing current account deficit and accelerating inflation, indicating that the worst recession since World War II is about to end.
Investor's risk appetite inclined giving a chance for the high yielding currencies like the euro and the pound to gain. The USDIX declined recording a low of 76.18 and a high of 76.33.
The euro dollar pair inclined recording a high of 1.4734 and a low of 1.4704, having the 16 nation's currency trading around 1.4730. The pair is having a support at 1.4685 along with a resistance at 1.4760. We are waiting for the euro zone's trade balance that is expected to show a widening surplus so it may help the euro to show further gains. If the resistance was breached we expect to see the pair trading near the 1.4790 levels. The pair is trading in an oversold area according to the daily momentum indicators.
Regarding the pound dollar pair, it gained slightly recording a high of 1.6500 and a low of 1.6467, having the royal pound trading around 1.6485. The pair is having a resistance at 1.6535 along with a support at 1.6435. If the pair managed to break the resistance today it will target 1.6585 from where it can climb to 1.6625 levels. The British retail sales will be released today and may affect the pair's trades, while the daily stochastic oscillator is supporting the downside.
Finally, the dollar yen pair is consolidating between 91.25 and 90.95 recording a low of 90.98 and a high of 91.21. The pair is having a support at 90.65 along with a resistance at 91.30. The U.S initial claims and housing starts are on queue today and they may move the market on release. So far, the four hours stochastic oscillator is supporting the upside, so if the pair breached the resistance it will target 91.80 levels.
