The green currency extended its upside rise, inclining for the fourth day on technical movements. The federal currency is still rebounding from its fall against a basket of major currencies. The dollar index, a gauge of the dollar's strength against a six major currencies, surged slightly today to 79.24, compared with the opening at 79.20. The dollar is rising ever since the release of the better-than-estimated U.S. non-farm payrolls report last Friday, which boosted demand on the nation's currency. However, the dollar's next direction may be determined after the FOMC meeting tomorrow, where they will announce the interest rate.
In regards to the euro-dollar pair, it is declining on the daily charts, while it is consolidating on the 4-hour charts. The pair is heading to an oversold area, according to the Stochastic Oscillator on the daily charts. Moreover, Germany released today its CPI, showing slight improvement, whereas the wholesales price index released today also slipped. Meanwhile, the euro is traded at 1.4117, recording a high of 1.4185 and low of 1.4111 with support at 1.4090 and resistance at 1.4145.
Relative to the pound-dollar pair, it is also showing a decline on the daily charts, whereas the pair is moving sideways on the 4-hour charts. The U.K. released its trade balance today, showing unexpectedly a widened deficit, putting further downside pressure on the pound. So far, the pound is being traded at 1.6461 reaching a high of 1.6521 and a low of 1.6429 with support at 1.6425 and resistance at 1.6508.
In regards to the dollar-yen pair, it is showing a decline, according to the daily charts. On the 4-hour charts, the pair is moving in an oversold area. The pair is now close to the 61.8% Fibonacci retracement, to the fall of June 5 at 96.16. The Japanese yen gained against majors today, after the lower than expected Chinese industrial report and slump in exports increased the appeal of the yen as a refuge asset. Now, the yen is traded at 96.31 hitting a high of 97.16 and a low of 96.20, along with support at 96.16 and resistance at 96.67.
