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 has started to become visible. However, when investors become confident, they tend to turn to higher yielding currencies, while selling lower yielding currencies that hold back the dollar from rising.
Although there is an increased risk appetite in markets, causing investors to turn to higher yielding assets, we see that the euro is losing ground versus the dollar, since 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 still remains above the support of 1.4902. The momentum indicators on the one-hour chart are providing us with a downside trend; consequently meaning that the euro will continue to tumble downwards.
Presently, the pound seems to be vigorous in markets, climbing heavily against the federal currency, while 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 to markets. The USD/JPY is being traded at 90.12, while recording a high of 90.15 and a low of 89.26, where the momentum indicators are revealing an upside trend.