The U.S. dollar is doing an upside correction after declining yesterday versus a basket of major currencies as indicated by the dollar index. Geithner mentioned U.S. is committed to support the dollar ahead of the G8 meeting this week end. Investors at the week end are heading to lower-yielding assets at the expense of higher ones and fleeing metals and oil.
The euro-dollar pair is declining on the daily charts and 4-hour charts according to momentum indicators. Industrial production in the euro zone released today came worse than expected which raised concerns the recovery may be late. Meanwhile, the euro is trading at 1.3985 recording a high of 1.4128 and low of 1.3950 along with support at 1.3944 and resistance at 1.4016.
Relative to the pound-dollar pair, it is also showing a decline on the daily and 4-hour charts. The pair is reversed its upside trend on the 4-hour charts. Movements are merely technical today due to lack of fundamentals in the U.K. So far, the pound is trading at 1.6385 reaching a high of 1.6599 and a low of 1.6332 with support at 1.6312 and resistance at 1.6442.
With regard to the dollar-yen pair, it is showing incline on the daily and 4-hour charts. Today industrial production and confidence released earlier showed improvement. Now, the yen is traded at 98.20 hitting a high of 98.43 and a low of 97.52 along with support at 98.00 and resistance at 98.44.