The pound showed further declines against the dollar in today's Asian session, while the euro and the yen are consolidating. The USDIX fell slightly today recording a low of 78.25.
The euro dollar pair is consolidating between 1.4310 and 1.4280, recording a high of 1.4304 and a low of 1.4281 where the union currency is currently trading around 1.4300. The 1.4350 level still representing a strong resistance for the pair, despite it was breached yesterday when the German GDP reading was released to ensure that the economy is on the way to recovery, yet failed to maintain these levels as the pair reversed back below the 1.4300 level. Today, the pair is having a support at 1.4255 along with a resistance at 1.4315. However, momentum indicators on the four hours scale are supporting the downtrend.
Regarding the pound dollar pair, it declined recording a low of 1.6304 and a high of 1.6350, having the royal pound trading around 1.6330. The pair is taking a downtrend since the beginning of this week and it breached the support at 1.6400 that may be followed by further declines. The pair is having a support at the 1.6300 level along with a resistance at 1.6365. If the pair breached the support, we may see it trading in the 1.6250 levels. The stochastic oscillator on the daily charts is indicating that the pair trading near an oversold area.
Finally, the dollar yen pair is consolidating between 94.30 and 93.85 recording a low of 93.87 and a high of 94.25. A report today showed that Japan's yearly exports dropped and merchandise trade balance surplus narrowed to 380.2 billion yen from 507.5 billion yen. The yen fell slightly after today's fundamentals, before it started to gain back against the green currency. The pair is having a support at 93.75 along with a resistance at 94.55. So far, momentum indicators on the on hour charts are supporting the upside. New home sales and durable goods orders in the U.S will be released today, and it may move the market on release.