The Dollar Inches Up After European Data

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The dollar slightly inclines after downbeat data from the euro zone and United Kingdom. The dollar index, a gauge of the dollar's moves against a basket of major currencies, inclined to 75.04 compared with opening at 75.01. The green currency is now moving in an oversold area according to the Stochastic Oscillator momentum indicator on the daily charts; thus, a rebound may be expected.

The euro-dollar pair showsa slight incline on the daily and 4-hour charts. The pair is moving in an overbought area, as indicated by the Stochastic Oscillator on the daily charts, after breaching the strong psychological resistance at 1.5000. The euro slid below 1.5000 after ZEW survey for Germany had missed analyst's forecasts. The pair is currently traded at 1.5008 recording a high of 1.5014 and a low of 1.4949, while the coming support is at 1.5000 then 1.4985 and resistance at 1.5025.

The sterling-dollar pair declinedon the daily charts, but encountered downside pressure as it is inclined on the 4-hour and 1-hour charts. The pair declined after the news, which showed that trade deficit widened in September. Also, the pair is giving a bearish sign as indicated by the Stochastic Oscillator on the daily charts. So far, the pound is trading at 1.6713, setting a high of 1.6787 and a low of 1.6600; while the coming support for the pair is seen at 1.6690 and the resistance is spotted at 1.6725.

The dollar-yen pair showed anupside tendency over daily and 4-hour basis. The pair is showing incline, yet it will face a resistance at 90.28 which represents 23.6% Fibonacci retracement for the downside trend that started on August 10. Presently, the pair is trading around 90.07 after hitting a high of 90.17 and a low of 89.66; while the pair is currently facing the coming support level at 89.98, while the resistance is spotted at 90.17.

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