Today markets lack major economic data, while the attention was on the yuan rising heavily versus the dollar marking the highest level in 20 months as a result of China's central bank relaxing a two-year peg, as a way to battle inflation and attract more investments towards service industries and export manufacturing. The dollar is seen inclining as the Dollar Index, which gauges strength of the dollar against six major currencies, is currently trading at 85.54 while recording a high of 85.64 and a low of 85.08.
The euro is depreciating despite earlier optimism seen in markets which had investors turning to higher yielding currencies versus lower ones which was supporting the euro, but currently the euro is in its downtrend covering the opening gap posted this morning. The euro dollar pair is currently trading at 1.2391 above the support of 1.2300 and below the resistance of 1.2430 while recording a high of 1.2468 and a low of 1.2366. On the daily charts, the Stochastic Oscillator is supporting the fact that the pair is being traded in an overbought area.
The pound like the euro is starting to cover this morning's gap, which is why we are seeing the pound ease its earlier climb versus the federal currency. Currently the pair is being traded at 1.4847 above the support of 1.4770 and below the resistance of 1.4930 while recording a high of 1.4935 and a low of 1.4805. The pound dollar pair is also being traded in an overbought area using the momentum indicators as seen on the daily charts.
Turning to the dollar yen pair, we see that it is a different story as the dollar is aggressively rising past the yen, as investors are still interested in higher yielding assets which cause them to sell the lower yielding currency, which is the yen. The pair is currently trading at 91.42 posting a high of 91.47 and a low of 90.21 while we see a support at 90.80 and a resistance at 92.25.