The dollar is seen declining versus major currencies as a result of increased risk appetite as investors are currently more interested in higher yielding assets versus lower yielding assets. The optimism in markets came from analysts raising profits that are estimated for companies in the U.S., which supported the rise in stock markets. Looking at the Dollar Index, which gauges strength of the dollar against six major currencies, is currently declining trading at 84.29 while recording a high of 84.81 and a low of 84.17.
Despite the lack of major economic data in the euro zone, we see that the euro is surging versus the dollar as investors are more interested towards higher yielding currencies, which therefore boosts the euro in markets. The euro dollar pair is currently trading at 1.2584 above the support of 1.2470 and below the resistance of 1.2670 while posting a high of 1.2606 and a low of 1.2478. The daily charts are showing us that the pair is being traded in an overbought area, as the bullish wave continues.
Looking at the pound dollar pair, over the four-hour basis the technical charts are also providing us with a bullish wave, and also the United Kingdom today lacked major economic data that would boost the pound like it is rising now, but the optimism is the main reason behind the rise of the pound. The pair is currently trading at 1.5183 above the support of 1.5080 and below the resistance of 1.5230 while recording a high 1.5206 and a low of 1.5079. Also the momentum indicators over the four-basis are showing us that the pair is being traded in an oversold area.
Since investors are avoiding lower yielding currencies, we see the yen plummet in markets versus the dollar, while the pair is currently trading at 87.93 between the support of 87.30 and the resistance of 88.60 while recording a high of 87.98 and a low of 87.39.