The U.S. dollar continued to rise against major currencies ahead of tomorrow's jobs report, where investors seem to be hopeful over the outlook for the U.S. economy, where data yesterday provided strong optimism to investors regarding the outlook for the labor market, as the ADP employment report showed U.S. private employers added nearly 300K jobs in December.
The U.S. Dollar index, which measures the performance of the U.S. dollar against a basket of currencies including the Euro, the Pound, and the Yen, rose on daily basis to trade at 80.75, compared with the opening level at 80.28, while recording a high of 80.83 and a low of 80.16. Gold prices declined amid the dollar's strength to reach $1373.94, compared with the opening level at $1375.50 an ounce, and oil prices declined to trade at $88.60, compared with the opening level at $90.42.
The Euro extended its heavy decline against the Dollar, where the EUR-USD pair is trading at $1.3023, compared with the opening level at $1.3156, while recording a high of $1.3170 and a low of $1.3024. The pair is now trading below the $1.3025 level, and so long it remains below this level, we should expect more downside movement and the target then will be the $1.2965 support level, however, if the pair rises above $1.3025, the next target will be the $1.3080 resistance level.
The British Pound also declined today against the U.S. Dollar, where the GBP-USD pair is now trading at $1.5494, compared with the opening level at $1.5511, while the pair recorded a high of $1.5564 and a low of $1.5464. The pair is now trading below the important level at $1.5510 and so long it continues to trade below this level, the next target is set at $1.5460 and breaching this level would send the pair to the support at $1.5345, however breaching the $1.5510 level to the upside would send the pair to the $1.5570 resistance level.
The U.S. Dollar was stable against the Japanese Yen, where the USD-JPY pair is now trading at ¥83.13, compared with the opening level at ¥83.18, while recording a high of ¥83.39 and a low of ¥82.88. The pair is now trading below the ¥83.50 resistance level, which suggests that the way is open to reach the ¥81.75, but the pair must remain below ¥83.50 in order for this bearish scenario to continue, however, breaching the ¥83.50 to the upside would send the pair to the resistance level at ¥84.25.