The European and Asian stock markets are climbing as a result of the manufacturing sector in China expanding the most in five years; therefore as the stock markets rose lowered the demand on the dollar as investors were more interested in the higher-yielding assets which weighed on the dollar's strength versus major currencies.
The euro zone released its PMI manufacturing showing that the sector supporting economic growth continued to expand therefore increasing investors risk appetite pushing them more towards buying the euro. The EUR/USD is currently being traded at 1.4397 between the support of 1.4368 and the resistance of 1.4416 while recording a high of 1.4416 and a low of 1.4256. The momentum indicators on the one-hour charts are showing us that the pair is being traded in an overbought area.
Also the United Kingdom released its PMI manufacturing showing that it expanded, and since this sector accounts for nearly 15% of the GDP and is resuming its incline, also supported the incline of the pound against the dollar. The pair is currently being traded at 1.6222 while recording a high of 1.6240 and a low of 1.6056. For the pair we see there is a support at 1.6142 and a resistance at 1.6247 while also here the momentum indicators are showing us that the pair is being traded in an overbought region.
The dollar yen pair is currently traded at 92.78 above the support of 92.54 and below the resistance of 93.43 while recording a high of 93.20 and a low of 92.68. The Williams' % R on the one-hour charts is showing us that the pair is being traded in an oversold area, while currently the dollar is pressured in the markets therefore meaning that the yen is climbing due to the weakness of the dollar.