The green currency took a correctional move to the upside in today's Asian session after a sharp decline we witnessed yesterday when the Federal Reserve Chairman Mr. Ben S. Bernanke said that economic challenges remain founded, which led to fears spread in the currencies market and encouraged investors to turn to buying gold as a safe haven, while the high yielding currencies also gained.
The USDIX which tracks the strength of the dollar against a basket of major currencies, inclined today recording a high of 74.99 and a low of 74.80, and it is currently trading around 74.92.
The euro dollar pair declined recording a low of 1.4945 and a high of 1.4998, having the 16 nation's currency trading around 1.4970. Yesterday the pair rallied to the 1.5015 levels from where it began to decline again back to the 1.4980 levels and today the pair is having a support at 1.4920 along with a resistance at 1.5010. The pair is expected to show further declines according to the four hour stochastic oscillator, so we may see the pair breaching the support and trading around 1.4860. The euro zone's trade balance will be released today that will affect the pair's trades.
As for the pound yen pair, it fell slightly recording a low of 1.6795 and a high of 1.6844, having the union currency trading around 1.6825. The pair is having a support at 1.6765 along with a resistance at 1.6890 and if the pair breached today's support, it may fall back to the 1.6700 levels. The British CPI is on queue today and it will affect the pair on release and the pair is trading in an overbought area according to the four hours momentum indicators.
Finally, the dollar yen pair is consolidating between 88.90 and 89.20 recording a high of 89.16 and a low of 88.96, having the pair trading around 89.10. The pair is having a resistance at 89.55 along with a support at 88.75 and if it broke the resistance, the pair will target 89.90 levels. Fundamentals concerning PPI and industrial production in the U.S will be released today and it tends to move the market on release. Yet, the daily stochastic oscillator is supporting the downside.