The first day of the economical week witnessed a severe volatility in markets and especially the dollar which dropped to the lowest levels for this year as it sank by 0.3% in today’s trading session, as low interest rates encouraged investors to turn into high yielding assets and dump the Benjamin.
Conversely the Dollar managed shake off all the losses acquired in the European session as it gained momentum once again throughout the U.S session, sending the GBP and the Yen to lose ground against the Dollar; whereas the Euro continued to hold tight on gains it accomplished throughout today’s trading session.
Whereas the U.S Dollar Index; which measures the performance of the Green Benjamin against a six major currencies fell in today’s trading session from the opening level of 76.851 and currently at 76.684, while managing to reach the highest level for today at 77.085 and the lowest at 76.524.
The EUR/USD pair is slightly higher on the daily scale whereas it is currently trading at $1.4609 from the opening price of $1.4597, whereas the Stochastic Oscillator indicated a severe overbought area for the pair thus the tendency for the pair to drop is highly predictable over the upcoming hours. The pair is currently trading within an upside channel while dropping on the four hour scale trying to reach the support level at $1.4565 but holds a strong tendency to incline to $1.4651 levels, which is considered a resistance level before dropping to the previously mentioned support level. The trading range for the pair will be set among the support level at $1.4552 and the resistance level at $1.4662.
As for the GBP/USD pair, it continues with its drop on the four hour scale whereas it will continue to trade sideways before determining a valid direction, the pair is currently facing a strong resistance levels at $1.6592 and the main upside channel support level that is set at $1.6534 therefore a breach for either the levels will provide the pair with enough momentum to reach its upcoming targets at the resistance levels at $1.6626 or the support levels at $1.6499. The pair managed to reach the highest level for today at $1.6690 and the lowest level at $1.6519 while currently trading at $1.6569 levels.
Finally talking about the USD/JPY pair, the dollar is currently gaining against the Japanese yen with a tendency to incline even further on the daily scale, the pair managed to reach the highest levels for today at 91.14 and the lowest levels at $90.18, while facing a support level at $90.17 and a resistance levels at 91.56. The pair is trading at $90.96 from the opening levels of $90.29.