The dollar and yen strengthen

With regard to the euro-dollar pair, it declined sharply on the daily and 4-hour charts after rumors the German Chancellor Angela Merkel will resign. The pair breached strong support at 1.4430 heading to 1.4373, recording a high of 1.4510 and a low of 1.4367, while it faces next resistance at 1.4460 and support is seen at 1.4315.

As for the sterling-dollar pair, it is showing a downside move on the daily and 4-hour charts, after 5 days of incline. The pair is overbought as indicated by the Stochastic Oscillator momentum indicator on the daily charts and may do a downside correction. It is currently traded at 1.6275 after setting a high of 1.6355 and a low of 1.6266; while the coming support for the pair is seen at 1.6240 and the resistance is spotted at 1.6345.

Relative to the dollar-yen pair, it is continuing its decline towards 90.35 level which represents 38.2% Fibonacci retracement to the upside trend that started at the beginning of December. Now, the pair is traded at 90.79 after hitting a high of 91.31 and a low of 90.57, while it is currently facing the coming support level at 91.35, while the resistance is spotted at 92.25.