The currencies market continues to fluctuate and the trend is shaping despite expectations for a calm day due to the lack of fundamentals. Investors are awaiting more confirmations on the state of the US economy, especially with the start of the earnings season.
Despite trading in a tight range, the euro still declined versus the dollar continuing the trend seen on Friday. The decline took the pair lower from the highest recorded at 1.2647 to the low set around 1.2548, and currently the pair is trading among the support at 1.2565 and the resistance at 1.2605.
The positivity is still evident on the pair, and according to the technical analysis the downside move that started on Friday is merely correctional to unload momentum indicators from overbought areas. As far as areas of 1.2470 is not breach to the downside the upside wave remains valid despite the ongoing downside correction.
The GDP data did no present anything new for us today, as the GDP was unrevised with 0.3% expansion in the first three months of the year. Nonetheless, sterling continued its southern course since last Thursday and declined towards the lowest recorded at 1.4946 before gathering momentum there to rebound to the highest at 1.5084 where it currently hovers. The pound is trading among the support at 1.5005 and the resistance at 1.5080 which if breached will take the pair higher towards the next resistance at 1.5115.
European and U.S indices are trading higher, but the Japanese yen is still gaining grounds versus the dollar ahead of the earnings as investors remain jittery that the second quarter volatility might have affected businesses and will define the coming period in the market. The pair declined from the highest recorded at 89.15 to the lowest at 88.49. The pair is currently trading among 88.20 support and 89.05 resistance and technically it is indeed targeting 88.20.