The green currency slipped versus a basket of major currencies as seen on the dollar index which plunged to 76.06 compared with the opening at 76.21 as a downside correction after rising for 5 consecutive sessions. Still, there are fears in markets that the recovery is not strong enough which is enhancing demand on the yen as a refuge.
With regard to the euro-dollar pair, it is showing a slight incline on the daily charts. The euro rebounded from the low of 1.4667 to 1.4722 after hitting a high of 1.4781. The 16-nation currency is now oversold according to the Stochastic Oscillator on the daily charts. The upbeat trade balance and current account which showed a widened surplus did not give much support for the euro. The pair is expected to face the next support at 1.4688 and next resistance will be at 1.4756.
As for the sterling-dollar pair, it is continuing its downside fall on the daily charts, while showing also downside signs on the 4-hour and 1-hour charts. Today's data which showed that trade deficit widened in October boosted the drop. So far, the pound is trading at 1.6208 setting a high of 1.6375 and a low of 1.6166; while the coming support for the pair is seen at 1.6150 and the resistance is spotted at 1.6250.
Relative to the dollar-yen pair, it is declining on the daily charts for the third day. The pair after breaching the strong support at 87.84 which represents 23.6% Fibonacci retracement to the downside trend that started on August 10, is retesting it again. Moreover, the slow down in the Japanese growth in the third quarter raised concerns with regard recovery in the second-largest economy in the world, spurring demand on the yen as a safe haven. Now, the pair is trading around 87.89 after hitting a high of 88.68 and a low of 87.35, whereas the coming support is at 87.50 and resistance at 88.15.