The green currency rebounded today, retracing its earlier losses after the release of Durable goods which missed analysts’ forecasts, raising risk aversion and thereby boosting demand on lower-yielding currencies as refuge. The dollar index, a gauge of the dollar's strength against a basket of six major currencies, surged from a low of 76.52 to 76.88 after the downbeat data and ahead of the release of the housing data.
The euro-dollar pair declined slightly on the daily interval, while still rising over intraday basis on 4 and 1-hour charts. Germany released today its Gfk consumer confidence survey for October which leaped to a 16-month high. The euro soared after the release of the news, but it retreated slightly after the U.S. data. Meanwhile, the euro is currently trading around1.4662 recording a high of 1.4719 and low of 1.4613, where the pair is supported by 1.4625 and faces the coming resistance of 1.4675.
As for the sterling-dollar pair, it is still continuing its downside trend on the daily charts that started on September 14. The pair breached the neckline for a bearish pattern on the daily time frame. Nevertheless, the pair is showing an upside bias on the 4-hour and 1-hour charts, attempting an upside correction to relief momentum indicators but the dollar's strength is causing downside pressures. So far, the pound is traded at 1.5974 setting a high of 1.6065 and a low of 1.5914; the coming support for the pair is seen at 1.5950 and the resistance is spotted at 1.5997.
With regard to the dollar-yen pair, it is showing a downside bias on the daily and 4-hour charts, reflecting fears in markets after the release of the U.S. news. The Japanese yen strengthened yesterday on speculations many Japanese firms will repatriate funds back home, fueling a yen buy-back wave. Now, the pair is trading around 90.24 after hitting a high of 91.35 and a low of 89.94; while the pair is currently facing the coming support level at 90.00 and the resistance is spotted at 90.55.