The U.S. dollar strengthened on concerns with regard banks that are still suffering from the financial crisis. For instance, UBS AG announced that it posted losses above expectations and as the British government raised its stake in Royal Bank of Scotland. The persistent woes, which outweighed the impact of the upbeat U.S. factory orders data, ignited fears in markets and sparked demand for safety assets. The dollar index spiked to 76.63 from the opening at 76.16.
As regards to the euro-dollar pair, it is declining on the daily charts, heading to an oversold area as indicated by the Stochastic Oscillator momentum indicator. The euro zone lacked fundamentals today and movements were merely technical. The pair is continuing its downside direction on the daily charts after taking a break yesterday. Meanwhile, the euro is traded at 1.4654 recording a high of 1.4810 and low of 1.4624, where the pair is supported by 1.4630 then faces the coming resistance of 1.4670.
As for the sterling-dollar pair, it is showing a slight decline on the daily charts. However, on the 4-hour and 1-hour charts it is inclining. PMI Construction for October released today came worse than expected, but the sterling was not impacted. So far, the pound is trading at 1.6402 setting a high of 1.6419 and a low of 1.6259; while the coming support for the pair is seen at 1.6385 and the resistance is spotted at 1.6421.
With regard to the dollar-yen pair, it is showing an upside tendency over daily and 4-hour basis. The pair has breached the strong resistance at 90.28 which represents 23.6% Fibonacci retracement for the downside trend that started on August 10, but it may retest it again. Now, the pair is trading around 90.38 after hitting a high of 90.57 and a low of 89.85; while the pair is currently facing the coming support level at 90.15, while the resistance is spotted at 90.55.