The world's leading economy released its trade balance report showing widened deficit in the month of November, in addition investors turned to low yielding assets due to China's forcing banks to raise their reserve requirements along with Alcoa's disappointing results throughout the fourth quarter of 2009 thus luring investors into low yielding assets.
But on the daily scale, The U.S Dollar Index; which measures the performance of the Green Benjamin against a six major currencies including the Euro, Pound and Yen declined from the opening levels of 77.172 to trade at 76.982 after reaching the highest levels for today at 77.197 and the lowest at 76.758.
The euro-dollar pair currently heading downwards on the Daily scale and the four hour scale with tendency to drop further due to the pair's trading in an overbought area on the Stochastic Oscillator which will pressure the pair to decline over the upcoming period, in addition the pair rebounded from the resistance levels stated in yesterday's report that was set at $1.4551. Meanwhile the pair is expected to breach the next support level at $1.4478 to test the upcoming support levels at $1.4449 before determining the general direction for tomorrow's trading session. The pair managed to trade at $1.4545 which was the highest for today and the lowest level at $1.4451 while currently trading at $1.4493. As for the upcoming support and resistance levels, they can be witnessed at $1.4515 and $1.1.4620 respectively
The sterling-dollar pair continues to incline after it managed to breach the resistance levels at $1.6157 in attempt to build a strong base above it along with breaching the descending channel's resistance level at $1.6110 earlier today, as for trading on the four hour chart the pair is currently ascending targeting the upcoming resistance level that can be witnessed at $1.6227 but currently the pair reached an overbought area which will force the pair to adjust the price before continuing within the ascending trend. The pair managed to reach the highest point at $1.6192 and the lowest at $1.6061 while currently trading at $1.6173, as for the upcoming support and resistance levels they can be witnessed at $1.6085 and $1.6240 respectively.
Finally talking about the USDJPY pair, the pair managed to breach the ascending channel's support levels at $92.17 and the support levels at $91.39 where it currently dropping to target the upcoming support levels at $90.63 as it currently trade at $90.88 where the pair is expected to incline over the four hours chart as the pair trades in an oversold area on various Oscillators as a technical move to adjust the price. The pair managed to reach the highest levels for today at $92.42 and the lowest at $90.69. The upcoming support and resistance levels for the pair are set at $90.35 and $91.25 respectively.