The dollar weakened against the euro today, while the pound is consolidating against its American counterpart after the CBE said yesterday that contractions would be witnessed till mid 2010. The USDIX declined today recording a low of 77.91
The euro dollar pair inclined today recording a high of 1.4371 and a low of 1.4341, having the union currency trading around 1.4363. The pair went back to the 1.4300 level yesterday and today it is having a resistance at 1.4390 along with a support at 1.4325. Trade balance in Germany will be released today and it may support the euro to gain especially with the cheerful forecasts of a widening surplus. If the pair breached the resistance it will target 1.4420, while momentum indicators on the four hours scale are indicating that the pair is trading in an oversold area.
As for the pound dollar pair, it is consolidating between 1.6815 and 1.6745, reaching a low of 1.6748 and a high of 1.6810. Yesterday the pair broke the 1.7000 level getting back to the 1.6750 level after the release of the BoE rate decision where the pound is currently trading around 1.6775. So far, the pair is having a support at 1.6730 along with a resistance at 1.6835. The pair is likely to show further declines and the stochastic oscillator on the daily charts is supporting the downtrend. On queue later today is the PPI from the UK.
Finally, the dollar weakened against the yen and the pair recorded a low of 95.21 and a high of 95.54, having the green currency trading around 95.30. The pair is having a support at 95.15 along with a resistance at 95.50. Markets may remain on hold as investors wait anxiously for the release of the NFP in the US where expectations are rather optimistic. However, Momentum indicators on the four hours scale are supporting the downside.