The U.S. dollar and Japanese yen slipped today against majors ahead of the release of U.S. existing home sales for December amid tranquility in markets due to lack of important fundamentals from major economies. However, the yen and dollar may rebound again on financial concerns in markets after Obama's plan to limit risk-taking by banks. The dollar index, a measure of the dollar's movements against a basket of major currencies, slumped for the second day to 78.05 from the day's opening at 78.23.
With regard to the euro-dollar pair, it inclined on the daily and 4-hour charts. The pair rebounded for the second day from an oversold area as indicated by the Stochastic Oscillator momentum indicator after 3 days of decline, where the 16-nation currency reached the lowest in 5 months versus the dollar last week. Meanwhile, the pair is traded at 1.4185 after reaching a high of 1.4194 and a low of 1.4128, where the coming support is seen at 1.4115 and next resistance is at 1.4210.
As for the sterling-dollar pair, it is showing an incline on the daily charts, rebounding from three days of decline. The pair after dropping on Friday, gained support at 1.6075, where it is currently traded at 1.6160 after reaching a high of 1.6173 and a low of 1.6087, while the coming support for the pair is seen at 1.6075 and the resistance is spotted at 1.6245.
Relative to the dollar-yen pair, it is consolidating on the daily charts as it is traded at 90.28 after dropping earlier to a low of 89.80, while it stopped inclining after recording the day's high at 90.33 that approached the strong resistance at 90.34 which represents 38.2% Fibonacci retracement to the upside trend that started at the beginning of December. Now, the pair is expected to face the coming support level at 89.25, while the resistance is spotted at 91.25.