The U.S. economy is going to later on release pending home sales in which expectations reveal that based on a monthly basis will improve therefore would cause investors to buy the dollar in the markets as they look forward to the outlook of the U.S. The Dollar Index, which usually measures strength of the dollar versus six major currencies, is currently traded at 79.14 while recording a high of 79.40 and a low of 79.10.
The euro dollar pair is being traded in an overbought area while the euro zone released its producer prices showing that on the year they climbed therefore supporting further the fact that President of the ECB Jean-Claude Trichet will anchor inflation in the medium term. The EUR/USD is currently traded at 1.3934 between the support of 1.3870 and the resistance of 1.4000 while recording a high of 1.3955 and a low of 1.3885. The volume indicator on the one-hour chart is showing us there is low volume in the markets.
Turning to the pound dollar pair we see that they are traded at 1.5920 while recording a high of 1.5972 and a low of 1.5902 as the pair is consolidating between the support of 1.5850 and the resistance of 1.5950. Although the United Kingdom released its construction sector showing that it was higher than estimated, yet it remains contracting which is a reason that it did not support the pound in the markets.
As investors are awaiting the U.S. data, the markets are tranquil while the USD/JPY is traded at 90.66 below the resistance of 91.10 and above the support of 90.30. The momentum indicators on the one-hour charts are providing us with a downwards trend.