Today's trading started with some downside bias for the U.S dollar against major currencies amid prevailing optimism. Asian indices head to the upside and Europe trailed the green footsteps, as the focus now is on the continued pace of economic recovery. Yet, as the day progressed into the European session, majors are starting to lose the upside momentum amid a new wave of dollar dominance which is reluctant to surrender its eminent status.
The euro is trading today versus the dollar among 1.3590 and 1.3653 and the start of the session was favoring the euro over the dollar, nonetheless, trading resumed once again favoring the dollar. The euro is trading among 1.3560 support and 1.3655 resistance, and shall trading stabilize below the aforesaid resistance the dollar's dominance will likely prevail for today.
Despite that sterling versus the dollar is still trading in positive areas compared to last week's closing, yet still trading was biased for the dollar after the pair failed in stabilizing above 1.5500. The pair recorded the highest at 1.5502 and the lowest at 1.5429. Currently, the pair is trading below the 1.5525 resistance which increases the likelihood for a downside move for the rest the day as the dollar will prove its strength with the breach of 1.5455 support to continue the downside movement for the pair.
The dollar failed in holding its grounds against the Japanese yen, as it resumed declining strongly versus the yen due to overbought signals on the pair. The pair declined to record its lowest at 91.27 after setting the high of 91.90.
The lack of major fundamentals today caused this weak trading to prevail while in the U.S session fresh new liquidity is to enter the market which might expand the trading range for today. Yet in general, though the fears receded slightly we still see that the prevailing sentiment in fragile and weak tilting towards pessimism more than it is for optimism.