Today trading in markets is characterized by low volume due to lack of important fundamentals from major economies. U.S. Retail sales report released earlier came better than expected showing the recession is easing in the world's largest economy; the thing that enhanced demand on higher-yielding currencies. The dollar retreated slightly today against a basket of major currencies after inclining yesterday.
The euro-dollar pair is inclining on the daily charts and showing signs of slight incline on the 4-hour charts according to momentum indicators. Today the euro zone lacked fundamentals, but the ECB released its monthly report showing the economic status of the economy and giving expectations. They mentioned that recovery will be witnessed by mid 2010. Meanwhile, the euro is trading at 1.4029 recording a high of 1.4061 and low of 1.3944 along with support at 1.3980 and resistance at 1.4052 then 1.4075.
Relative to the pound-dollar pair, it is showing incline on the 4-hour charts on its way to entering an overbought area according to the Stochastic Oscillator. The pair is continuing its upside trend on the 4-hour charts. Movements are merely technical today due to lack of fundamentals in the U.K. So far, the pound is trading at 1.6477 reaching a high of 1.6493 and a low of 1.6341 with support at 1.6423 and resistance at 1.6509.
With regard to the dollar-yen pair, it is showing slight decline on the 4-hour charts. Today also there were no fundamentals in Japan so movements are purely technical. Now, the yen is traded at 98.21 hitting a high of 98.56 and a low of 97.64 along with support at 98.00 and resistance at 98.45.