Ahead of the FOMC rate decision fears are spread throughout the currencies market as on one hand the world's superpower housing sector started to retrench again strongly in May after that the government's tax credit program expired with the new home sales for that period dropping to 300 thousand from 504 thousand within the prior month, while on the other hand the EU manufacturing sector activities are struggling to revive from the crisis.
However major pairs are currently narrow trading due to these fears and the presence of strong technical movements to have the dollar index, which tracks the strength of the green Benjamin in front of a basket of currencies, narrow trading so far on the one-hour and four-hour charts to trade around 86.15 recording a high of 86.41 and a low of 85.88.
As a result, the euro-dollar pair is now consolidating to have the Union currency trading so far around $1.2252 recording a high of $1.2305 and a low of $1.2207 with a resistance detected at $1.2400 and a support seen at $1.2170, while the pair shows a slender tendency to rise faintly to the upside according to the four-hour momentum indicators.
Moreover, the pound-dollar pair is narrow trading as well between a resistance level of $1.4930 and a support level at $1.4770 and may start to fall according to the four-hour stochastic oscillator, having the royal pound trading around $1.4893 recording a high of $1.4941 and a low of $1.4800.
As for the dollar-yen pair, it is now narrow trading on technical movements after plummeting deeply throughout the EU session as the gloomy U.S and EU data boosted fears and sentiments that the global recovery could start to slow down, which eventually boosted up the refuge appeal of the low-yielding yen, as the pair is now trading 90.12 recording a high of 90.59 and a low of 89.97 with a resistance at 91.60 and a support at 88.00.