The first trading day for this week witnessed the euro gaining against the dollar, while the pound is consolidating and the dollar fell against the Japanese yen. This came ahead of important fundamentals should be released today to show inflation in the euro area accelerating and retail sales in the U.S advancing. The USDIX that tracks the strength of the dollar against a basket of major currencies declined recording a low of 75.00 and a high of 75.23 and it is currently trading around 75.65.
The euro dollar pair inclined today recording a high of 1.4973 and a low of 1.4934, having the 16 nation's currency trading around 1.4970. The pair is in an attempt to breach the 1.5000 level that represents the resistance, while the support could be found at 1.4920. The pair is expected to breach the resistance according to the four hour stochastic oscillator, so we may see the pair trading near the 1.5065 levels. However, the euro zone's CPI will be released today that may support the euro to gain as forecasts refer to accelerating inflation.
Regarding the pound dollar pair, it is consolidating between 1.6680 and 1.6740 recording a high of 1.6733 and a low of 1.6684, having the royal pound trading around 1.6715. The pair is having a support at 1.6660 along with a resistance at 1.6770. If the pair broke the resistance it will target 1.6810, while if it breached the support the pair will be trading around 1.6615 levels. However, the pair is trading in an overbought area according to the four hour momentum indicators.
Finally, the dollar fell slightly against the Japanese yen recording a low of 89.37 and a high of 89.69, having the pair trading around 89.60. Today the Japanese GDP preliminary reading helped the yen to gain as it showed the economy expanding an annual 4.8%. The pair is having a support at 89.15 along with a resistance at 89.85 and if the support was breached, the pair will target 88.80. The U.S retail sales is on queue today that may move the market on release. Yet, the pair is trading in an oversold area according to the four hour stochastic oscillator.