Higher-yielding currencies did an upside correctional movements after their decline throughout this week. The dollar and yen retreated against the euro and pound; however, the data released today did not have an impact on the currencies' movements. Therefore, we can not say that there is optimism again or the dollar is weak, but it is just a correction movement after the unwinding carry trades that dominated markets yesterday.
The euro-dollar pair is showing an incline on the daily chars; however, on the 4-hour charts there are signs of incline according to Stochastic Oscillator momentum indicator. Germany released upbeat data concerning inflation and trade balance showing improvement. Meanwhile, the euro is trading at 1.3957 recording a high of 1.4007 and low of 1.3857 along with support at 1.3914 and resistance at 1.3994.
Relative to the pound-dollar pair, it is also showing an incline on the daily charts with slight decline on the 4-hour charts. U.K. kept the interest rate unchanged today and announced also that they will continue with their 125 billion pounds plan that will take another month to be completed. So far, the pound is trading at 1.6203 reaching a high of 1.6269 and a low of 1.6028 with support at 1.6122 and resistance at 1.6286.
With regard to the dollar-yen pair, it is declining on the daily and 4-hour charts. Now, the yen is traded at 92.55 hitting a high of 93.59 and a low of 92.36 along with support at 92.24 and resistance at 93.03.