The European single currency and the pound bounced today against the dollar on signs of economic recovery after the release of upbeat data from Germany and U.K. showing further improvement. On the other hand, the U.S. dollar slipped for the third consecutive day against a basket of major currencies as seen by the dollar index which is now at 77.44 from 78.02.
As regards to the euro-dollar pair, it is showing an incline on the daily and 4-hour charts. Today Germany released its trade balance for July showing improvement with exports surging for the third month. Later on today, Germany will release its industrial production with expectations to show progress also. The euro has touched 2009 high at 1.4445 augmenting near 100 pips after the bounce in stock markets and Gold prices. Meanwhile, the euro is traded at 1.4436 recording a high of 1.4445 and low of 1.4326, where the pair is supported by 1.4423 and faces the coming resistance of 1.4445.
As for the sterling-dollar pair, it is also showing an upside bias on the daily and 4-hour charts. The U.K. released today its industrial and manufacturing production for July, where manufacturing production soared to the highest in three years and industrial production beats estimates, indicating that the worst is over. The better-than expected reports lifted the pound to 2-week high versus the dollar. So far, the pound is traded at 1.6520 setting a high of 1.6534 and a low of 1.6320; while the coming support for the pair is seen at 1.6518 then 1.6500 and the resistance is spotted at 1.6585.
With regard to the dollar-yen pair, it is continuing its downside trend that started on August 10 on the daily charts. The pair also is showing a decline on the 4-hour and 1-hour charts. Now, the pair is trading around 92.20 after hitting a high of 93.09 and a low of 92.11; while the pair is currently facing the coming support level at 92.00, while the resistance is spotted at 92.36.