As the dollar has been on the rise lately, today we see it reverse its gain as it clears the way for major currencies to rally especially as there are anticipations the massive decline of the euro and pound have been overrated regarding the debt crisis in Europe.

From the U.S. economy today, scheduled is the release of the annualized GDP first quarter preliminary reading with an upwards revision to 3.4% from 3.2%. If projections are accurate, then this will support the dollar to restore some of its losses it has been posting today. The Dollar Index, which gauges strength of the dollar against six major currencies, is currently declining trading at 86.52 while recording a high of 86.96 and a low of 86.32.

The negative sentiment is slightly easing as we see that the euro dollar pair is finally climbing for the first time in four days, supported by the foreign-exchange regulator of China saying that the anticipations of them reviewing their euro-denominated assets were not true. As a result of speculations being cleared, eased worries that the fiscal crisis of European nations was going to spread.

The euro dollar is currently trading at 1.2287 above the support of 1.2205 and below the resistance of 1.2360 while recording a high of 1.2342 and a low of 1.2152. The technical charts reveal that the pair is being traded in an oversold area as the daily-charts show.

Turning to the pound dollar pair we see that they are also rallying as investors are buying higher yielding assets versus lower yielding assets, which supports the pound in the markets. Also the positive sentiment appeared in markets after indications have been appearing that nations in Asia are on the right road to recovery.

The GBP/USD is currently trading at 1.4550 between the support of 1.4460 and the resistance of 1.4615 while recording a high of 1.4577 and a low of 1.4364. Over the four-hour basis, the technical charts reveal that the pair is being traded in an overbought area.

When there is a positive wave in markets, we see the yen tumble against the dollar as investors no longer need the currency as a safe refuge against the debt crisis. The pair is currently trading at 90.50 between the support of 90.00 and the resistance of 91.25 while recording a high of 90.52 and a low of 89.79.