The British pound dropped after the inflation report released today as King expects slower recovery for the British economy which enhanced investors to sell the sterling. On the other hand the dollar dropped to 15 month low against a basket of major currencies on speculations the FED will not raise the interest rate soon.
As regards to the euro-dollar pair, it is showing an incline on the daily charts but declining on the 4-hour charts and 1-hour charts. The pair is moving in an overbought area as indicated by the Stochastic Oscillator on the daily charts after breaching the strong psychological resistance at 1.5000 reaching the highest in 2 weeks at 1.4045. The pair is currently traded at 1.5031 recording a high of 1.5048 and a low of 1.4967, while the coming support is at 1.5000 and resistance at 1.5045.
As for the sterling-dollar pair, it is declining on the daily and 4-hour charts. The pair reversed from an overbought area as seen by the Stochastic Oscillator on the daily charts. King mentioned today that inflation will be raised in the coming period as the pound depreciates. So far, the pound is trading at 1.6659 setting a high of 1.6796 and a low of 1.6616; while the coming support for the pair is seen at 1.6635 and the resistance is spotted at 1.6780.
With regard to the dollar-yen pair, it is moving sideways over daily but over the 4-hour and 1-hour basis. The pair is showing incline, yet it will face a resistance at 90.28 which represents 23.6% Fibonacci retracement for the downside trend that started on August 10. Now, the pair is trading around 89.94 after hitting a high of 90.02 and a low of 89.27; while the pair is currently facing the coming support level at 89.75, while the resistance is spotted at 90.28.