The U.S. dollar resumed its incline after the release of U.S. reports showing that inflation accelerated and industrial production increased above estimates. The upbeat figures outstripped the impact of the grim manufacturing report. The greenback is continuing its upside trend that started since the release of the NFP report ahead of the FOMC interest rate decision tomorrow.
With regard to the euro-dollar pair, it is showing a sharp decline on the daily charts, but facing upside pressure from the 4-hour and 1-hour charts. The pair is still floating in an oversold area, according to the Stochastic Oscillator on the daily charts. Also, the decline in Zew survey report in the euro zone and Germany pushed the pair further to the downside. The pair is currently traded at 1.4566 recording a high of 1.4662 and a low of 1.4519, whereas the coming support is at 1.4500 and resistance at 1.4615.
As for the sterling-dollar pair, it is declining slightly on the daily charts, but showing upside tendency on the 4-hour and 1-hopur charts. CPI in the U.K. climbed to 1.9% in November, but the pair is still pushed down due to the dollar's strength. The pair is currently close to doing 61.8% Fibonacci retarcement to the upside trend that started on October 13. So far, the pound is trading at 1.6256 setting a high of 1.6318 and a low of 1.6203; while the coming support for the pair is seen at 1.6200 and the resistance is spotted at 1.6318.
Relative to the dollar-yen pair, it is inclining harshly on the daily and 4-hour charts. The pair breached the resistance at 89.42 which became a support, where it now traded around 89.96 after hitting a high of 89.77 and a low of 88.56, whereas the coming resistance is spotted at 90.15.