Today we see that the dollar is in correction versus major currencies, while there is rising confidence that were led from company reporting profits, supporting the fact that a global economic recovery is starting to become visible. When investors become confident, they tend to turn to higher yieliding currencies while selling lower yielding currencies which hold back the dollar from rising.
Although there is increased risk appetite in the markets which causes investors to turn to higher yielding assets, yet we see that the euro is losing ground versus the dollar as the euro could not breach the strong resistance of 1.4962. The pair is currently trading at 1.4914 while recording a high of 1.4966 and a low of 1.4910 yet remains above the support of 1.4902. The momentum indicators on the one-hour chart are providing us with a downside trend therefore meaning that the euro will continue to tumble downwards.
Now, the pound is vigorous in the markets climbing heavily against the federal currency while the momentum indicators on the one-hour chart are showing us that the pair is trading in an overbought area. The GBP/USD is being traded at 1.6207 between the resistance of 1.6285 and the support of 1.6125 while recording a high of 1.6225 and a low of 1.5989. The moving average indicators are providing us with an upside direction for the pair.
The dollar yen pair breached the resistance of 90.09 while heading towards the next resistance of 90.50 as the dollar is clearing the way in the markets. The USD/JPY is being traded at 90.12 while recording a high of 90.15 and a low of 89.26, and here the momentum indicators are revealing an upside trend.