The positive sentiment in the markets has investors buying higher yielding assets instead of lower yielding currencies, which therefore we see majors are rallying against the dollar, as most of last week we were witnessing of this occurring in the currencies market. The Dollar Index, which measures strength of the dollar versus six major currencies, is currently declining trading at 83.18 while recording a high of 84.17 and a low of 82.90.
Greece finally has been provided with aid, and this package they were provided with was worth 750 billion euros, which 440 billion euros was from government, 60 billion euros EU's budget and 250 billion euros from the International Monetary Fund (IMF). As a result of this huge package, we saw the euro dollar pair rally heavily rebounding from a 14-month low as last week it was trading in an oversold area, while currently the one-hour charts are showing us that the pair is traded in an overbought area. The EUR/USD is currently trading at 1.3041 between the support of 1.3038 and the resistance of 1.3090 while recording a high of 1.3093 and a low of 1.2805. The technical charts are also providing us with a bullish wave.
The pound like the euro is also heading for a bullish trend as a result of investors being optimistic about the outlook of the UK, as they believe that its economic conditions are brighter than other European nations. Despite the elections in the UK not having a majority parliament the first in 1974, still the pound this after the outcome of elections is climbing as investors are looking forward to David Cameron leader of the Conservatives shoring economic growth without swelling deficit further.
Today from the UK, the BoE will announce interest rates in which expectations show will leave them steady at 0.50% while continuing the pausing of the APF program. The pound dollar pair is currently trading at 1.4992 while recording a high of 1.5002 and a low of 1.4759, as the technical charts are showing us there is a support at 1.4950 and a resistance at 1.5035.The four-hour charts are showing us that the pair is being traded in an overbought area, while the trend for the day is to the upside.
Turning to the yen, we see that it tumbled after the Bank of Japan said that central banks will join in the U.S. dollar swap, as a way to avoid another credit crisis. The USD/JPY is currently trading at 93.14 above the support of 92.15 and the below the resistance of 93.55 while recording a high of 93.50 and a low of 91.65. The one-hour volume indicator are indicating there is low volume in the markets.