Markets are currentlywitnessing narrow trading after it was filled with optimism, especially as the central bank of Australia released their minutes stating that very low interest rates were not needed anymore; this meant that economic conditions were improving in Australia. Based on the stated facts, while the U.S. economy is scheduled to release its housing data with expectations showing improvement, is giving more evidence that the worst of this global recession is over, which encourages investors towards higher yielding currencies and therefore selling lower yielding currencies, which weighs heavilyon the dollars strength.

Since the euro is considered to be a higher yielding asset, we see that it surged in markets versus the dollar to reach the highest level posted since August 2008, but now the pair is trading in narrow ranges between the support of 1.4824 and the resistance of 1.5007 at 1.4966. The EUR/USD recorded a high of 1.4993 and a low of 1.4952, while the volumes indicator on the one-hour chart is showing us low volume in markets.

The pound depreciated against the federal currency, while the United Kingdom released its public finances showing that the budget deficit widened as a result of lower tax revenues collected, thus revealing that economic conditions are still stressed. The GBP/USD is being traded at 1.6394 between the support of 1.6365 and the resistance of 1.6448. The pair recorded a high of 1.6445 and a low of 1.6352.

The yen is seen climbing past the dollar after Japanese Finance Minster Hirohisa Fujii, once again, stated that he is reluctant to get involved in FOREX markets to avoid the yen's appreciation. The USD/JPY is being traded at 90.30 while recording a high of 90.78 and a low of 90.06, while there is a support of 90.10 and a resistance of 90.49.