The markets have reversed their trend after Germany factory orders unexpectedly declined which stored some optimism in markets, as currently investors are seeking any inch of hope and grab onto, which causes them right away to turn to higher yielding assets versus lower yielding assets. The Dollar Index, which gauges strength of the dollar against six major currencies, is currently declining trading at 88.23 while recording a high of 88.70 and a low of 88.15.
Germany factory orders for April and on the year rallied surpassing expectations, which hinted that demand in the euro zone was picking up which therefore restored some of the long lost confidence in the euro. As investors saw that demand is improving right away become optimistic about the outlook of the euro zone and turned to the euro giving it a boost from its earlier declines. The EUR/USD is currently trading at 1.1944 between the support of 1.1900 and the resistance of 1.1980 while recording a high of 1.1991 and a low of 1.1874. Over the daily basis, the technical charts are showing us that the pair is being traded in an oversold region.
Although the United Kingdom today lacked major economic data, yet the Prime Minister David Cameron said the government is going to take measures in order to tame the deficit, which restored some bright light in the economy. The pound following the euro's lead is also seen climbing versus the federal currency while the pair is currently trading at 1.4541 above the support of 1.4495 and below the resistance of 1.4595 while recording a high of 1.4561 and a low of 1.4386. The technical charts supported by the four-hour charts are providing us with an upside trend.
After the yen was surging in markets as investors are seeking a refuge against the European debt crisis which boosted the appeal of the yen in markets, currently it is slipping versus the dollar. The USD/JPY is currently trading at 91.79 between the support of 91.55 and the resistance of 92.05 while recording a high of 92.08 and a low of 90.96.