The U.S. dollar gained after the release of the U.S. non-farm payrolls report which showed that unemployment in the U.S. slipped to 9.7% in January from 10.0%. The better-than-expected news boosted the federal currency on hopes of improved outlook for the U.S. economy. The dollar index, which tracks the dollar movements versus a basket of major currencies, inclined to 80.25 from the day's opening at 80.00, breaching strong resistance at 80.07.
With regard to the euro-dollar pair, it slipped on the daily and 4-hour charts to continue its bearish pattern that started at the beginning of December. Today, German industrial production witnessed a sharp fall in December, adding concerns to the debt woes arising in the euro region. Meanwhile, the pair is traded at 1.3664 after reaching a high of 1.3745 and a low of 1.3636, where the coming support is seen at 1.3645 and next resistance is at 1.3800.
As for the sterling-dollar pair, it is also declining on the daily and 4-hour charts. The pound fell today after PPI rose to 3.8% in January from 3.5% which raised concerns that inflation may spark, especially as CPI is currently at 2.9%. The pair extended its downside trend that started since mid November after the breakout of support at 1.5830 yesterday. Now, the sterling is traded at 1.5646, recording a high of 1.5774 and a low of 1.5603, while it is moving between support at 1.5615 and resistance at 1.5700.
Relative to the dollar-yen pair, it edged up on the daily charts, but showing decline on the 4-hour and 1-hour charts. The pair is currently traded at 89.33, trying to remain above strong resistance at 89.30 which represents 50.0% Fibonacci retracement to the upside trend that started at the beginning of December. Today, the pair reached a high of 89.89 and a low of 88.86, while it is expected to face the coming support level at 89.00, while the resistance is spotted at 89.85.