The green currency dropped on Tuesday, after gaining for two day; retracing its prior gains on improved outlook, as Asian stocks advanced and European equities bounced at the early trading. A report released earlier, showed that Asian economies, excluding Japan, will grow 3.9% in 2009 and 6.4% in 2010; higher than previous forecasts. The dollar index is now close to its lowest level this year at 76.16, falling from the opening at 76.73.

The euro-dollar pair is continuing its upside trend on the daily charts, according to the Stochastic Oscillator momentum indicator. The European single currency is currently traded at the highest level this year versus the dollar. However, the pair may do a downside correction, as it is overbought on the 4-hour charts. Today, there are no fundamentals from the euro zone, and movements are expected to be technical. Meanwhile, the euro is traded at 1.4791, recording a high of 1.4798 and low of 1.4669; where the pair is supported by 1.4775 and faces the coming resistance of 1.4800.

The sterling-dollar pair is inclining on the daily charts, after falling for six consecutive days. The pair is rebounding from an oversold area; however, on the 4-hour and 1-hour charts it is showing a decline. Last week, the pound reached its lowest in 2-week versus the dollar. So far, the pound is traded at 1.6310, setting a high of 1.6339 and a low of 1.6199; while the coming support for the pair is seen at 1.6300 and the resistance is spotted at 1.6325.

However, the dollar-yen pair is showing a downside bias on the daily charts. The pair, after rebounding from the downside trend that started on August 10, slipped today. The pair is also declining on the 4-hour and 1-hour charts. Last week, the greenback touched its lowest in seven-month versus the yen; although now, the pair is trading around 91.36, after hitting a high of 92.07 and a low of 91.11; the pair is currently facing the coming support level at 91.28, while resistance is spotted at 91.45.