Earlier in markets, a gap appeareddue topessimistic news of the CIT Group filing for bankruptcy; the largest company to collapse after being supported by the Feds. The story is presently different, since the gap is trying to cover ahead of the U.S. data. The U.S. economy today is releasing its pending home sales, in which expectations show the monthly reading will decline adding more fears to markets.
The euro is gaining ground against the dollar based on technical movements, as the manufacturing sector released from the euro zone was inline with expectations and prior readings, which did not boost the euro. The EUR/USD is currently trading at 1.4772, above the support of 1.4759 and rising to the resistance of 1.4803. The pair recorded a high of 1.4786 and a low of 1.4702, while the volume indicator are showing us that on the one-hour chart there is low volume in markets.
The United Kingdom released its PMI manufacturing for October showing that after contraction it expanded surpassing market expectations, supported by the pound rising in markets versus the dollar. This specific sector represents 15% of the GDP, and as it expands supports the fact that the worst of this global recession is over. The pair is being traded at 1.6413 between the support of 1.6380 and the resistance of 1.6448, while recording a high of 1.6486 and a low of 1.6345.
The dollar yen pair is being traded in an oversold area on the one-hour charts, as the pair is trying to climb to the resistance of 90.49 but struggling as it trades above the support of 89.82 at 90.19. The momentum indicators are providing us with a sideways wave on the one-hour charts. The USD/JPY recorded a high of 90.30 and a low of 89.43.