The U.S. dollar inclined for the fourth day, continuing its rebound after falling to near 16-month low versus a basket of major currencies the previous week, as Dubai shares plummeted to the lowest level in 4 months and European stocks fell too, spurring demand for dollar and yen as refuges. The dollar index, a gauge of the greenback's movements versus six major currencies, soared to 76.03 from the opening of 75.71 after reaching a low of 75.48 and a high of 76.17.
With regard to the euro-dollar pair, it is showing a decline on the daily and 4-hour charts. The euro reversed back from the high of 1.4904 to 1.4795 after hitting a low of 1.4752. The 16-nation currency is continuing the downside correction after reaching near 16-month low versus the greenback last week. Now, the pair is expected to face the next support at 1.4752 then 1.4705 while the next resistance will be at 1.4855.
As for the sterling-dollar pair, it is falling on the daily charts after retracing the earlier gains. The United Kingdom lacked fundamentals today and therefore it traced the general trend in the market. So far, the pound is trading at 1.6351 setting a high of 1.6514 and a low of 1.6310; while the coming support for the pair is seen at 1.6320 and the resistance is spotted at 1.6390.
Relative to the dollar-yen pair, it is declining slightly on the daily charts after rising for four consecutive days. The pair is gaining strong support at 89.73 which represents 38.2% Fibonacci retracement to the downside trend that started on August 10. Now, the pair is trading around 90.02 after hitting a high of 90.36 and a low of 89.67; while the pair is currently facing the coming support level at 89.73, while resistance is spotted at 90.40.